Many crypto investors were taken by surprise by the sudden rise in the price of bitcoin today. I suppose the surprise has come from the fact that the mood has been extremely bearish over the last few weeks. As for yours truly, a close friend in Canada sent me a chart showing the dramatic rise. I immediately went in search of an answer. I did what I would normally in spotting a potential rally or fall, check the 4-hour chart. I saw the big rally particularly the volume that accompanied the price surge. I could not quite discern the time of the start so went to the 1-hour chart. It seemed the rally started at 7 am UTC (9 am CAT (Central African Time)). The candle at that time frame indicated a bullish engulfing pattern. Two hours after that there was enough volume and drive from the bulls to push the price upwards.
Looking at the 1-day chart now, one can see this sentiment reflected. We must bear in mind that the overall sentiment is still bearish by just looking at the chart. All the signals are still below the cloud. Many are wondering whether this a real rally or just some of the bulls pushing their luck?
Or could it be the struggles in Italy or the Ethereum hard fork? All these reasons don’t seem logical but as we know the crypto markets are very news fickle. Truth be told, I don’t think anyone really knows. I leave you with my usual saying when it comes to crypto prices – your guess is as good as mine.
I am not someone who wants to rain down on anyone’s party but the bitcoin fam as well as press seemed to have lost their minds even if for a brief moment. Bitcoin’s price rise in the last 24 hours or so has sent everyone into a frenzy. Headlines such as: “I’m Thinking $250,000 by 2022: Tim Draper Reveals New Bitcoin Price Target” or this example - “Crypto Hedge Fund Says Worst Is Over for Bitcoin” are abound. If one had just dropped in from Mars, you wouldn’t be blamed if you thought some cataclysmic event had just ended.
Personally, I think people should wait and see before writing such headlines. I suppose people want to see the heady days of bitcoin $20,000 once more, and can’t wait for it to happen! I don’t blame them because I would love to see the same but I am more cautious than most. As I am writing, the price of all the top ten cryptos with the exception of EOS have fallen slightly. Maybe not enough to panic but fallen nonetheless with bitcoin under $8000. As has been said in the past, no one knows where the price is headed but I suppose your guess is as good as mine.
Each morning, I have had the unfortunate pleasure of waking up to the familiar red background around Bitcoin price. In short, another set of losses for some as the price drops lower. Bitcoin’s volatility alone is enough to give many a heart attack but as some who have traded know, you need volatility in a market to make money. Some pundits are already harping on about the death of Bitcoin but this now rings hollow with many. Other pundits have advocated the HODL principle. In other words, hold on to your coins if you have a long-term view. As for the day or swing traders, most of them have lost money. They won’t tell you about it but when in a dark corner, they confess all.
Truth be told, no one is sure what the price will be. Most are just guessing. Maybe today will different because as I write I am watching the price of Bitcoin. I am looking a support of $6,881.20 on the Bitfinex exchange. Current price on Bitfinex $6,986.10. I also have a global average Bitcoin chart open with a support of $6,897.97. Falling through these support levels would mean more pain. I am invested in very little Bitcoin so need not worry. So why are you watching the price you may ask. Reason, where Bitcoin goes others follow. Will the price be on the rise today? Your guess is as good as mine. Let’s just wait and see.
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