Here’s my overall outlook on Bitcoin – the leading cryptocurrency.
We’re going to take a top down approach to the analysis, scaling in from the weekly to the 4 hour – an accurate way to analyse.
Below is the weekly chart for Bitcoin/US Dollar (Bitfinex chart). Printed on is my long term outlook for Bitcoin.
On the chart I’ve plotted the major support & resistance levels under my watch. You can see that BTCUSD is at a support as we speak, one that has reacted nicely in the past. However, beneath this is the crucial 6k psychological level, the most well respected & precise S/R level in Bitcoins recent history. I personally believe a retest of this level is inevitable, and wouldn’t be surprised at all to see a tap of this level come through before a bull run.
Now let’s take a look at a lower timeframe to get a scaled in view at what’s happening with BTCUSD.
Scoping down to the daily chart, we can see price reversed nicely off of the $7500 support, and is slowly rolling back to the upside towards a resistance zone. From here, I am personally anticipating a drive to the downside, pushing below $7500 and taking us down to the $6000 level before we reverse to the upside.
Note – I won’t be trading this reversal to the downside, even if we do see a reversal at the $8000 resistance. To me right now, direction is just too unclear with $7500 just below. For BTCUSD I will sit on the sidelines until we hit that $6k level, from where I’ll be looking to buy as long as the level sustains.
Regardless of my technical outlook it is possible that price could breach the $8000 resistance and shift to the upside from $7500, without ever meeting the crucial $6,000 support. This is the reason I am being so cautious right now on BTCUSD, I don’t want to get caught on the wrong side of a dump.
I will continue to post cryptocurrency updates for Bitcoin & many more digital assets. For the mean time, don’t forget to be ‘dollar-cost averaging’ into Bitcoin & purchasing physical crypto at the markets current low prices!