The cryptocurrency market is probably one of the most confusing and frustrating markets ever in existence. This has been further exacerbated by the presence of social media. Social media is not necessarily a bad thing. We now have sentimental analysis in full swing due to social media. One example is Twitter. This platform can inform an investor/speculator information as to what to expect from a particular asset. This very same media platform is also full of rumours and of course false information. This is why I would rather study the charts and ignore the chatter. Social chatter on Bitcoin is particularly infuriating. Case in point, Bitcoin is dead articles.
Getting back to Bitcoin, we all have observed that it has been in a consolidation pattern. Price volatility has not been too bad. I am sure those using Bollinger bands can bear witness to that. Looking at the BTC charts, we realise that price has tested support several times over the last few months. That support is at $9352 level. Remember the more times price tests a key level, the more likely it will be broken. As seen on the chart, if Bitcoin tests this key level, it will be the fourth time and may well breakthrough. If this level is broken, and price falls to $9083, expect the price to fall to the $8000 level.
You must remember that you are not alone in observing price movements, others are seeing the same patterns. Traders in long positions may well feel that the BTC price may well drop below support. The more insecure they feel, the more they are likely to sell their positions. We must not fail to mention those on the sidelines, in other words, those not in the market but observing. For them, an opportunity to sell into the market may have presented itself. They are likely to sell short. This will put even more selling pressure on the price of Bitcoin.
Having said that, nothing is stopping the price hitting $12000. We cannot underestimate that possibility. As I have often joked in the past, all it takes is Vitalik Buterin changing the colour of his underwear and the price goes up. I have admitted that things have since changed from such days. The crypto market is still fickle and could change suddenly with no warning. And as to where the price is heading, your guess is as good as mine.
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