Monday, 15 January 2018

Bitcoin Next Price Targets (Jan 2018)

This is a follow-up of my previous post Bitcoin Downtrend Continues.

Clearly the Bitcoin trading community respects the 50 DMA (in blue), and it lends strong support to prices since the peak, until it breaks down below it on 11 Jan 2018 (the supports of prices are indicated by 7 upward green arrows).

After 11 Jan 2018, the same 50 DMA now acts as resistance, and prices got rejected by this resistance in the following 3 days. Thus, the price descent continues (the rejections of prices are indicated by 3 downward red arrows).


Bitcoin price chart showing support and price targets
(Click chart to enlarge)

The most logical target it would move to next and find a bounce would be the 100 DMA (in green), and not surprisingly, it also coincides with the bottom of this falling channel (in purple). In addition, this is also where the trend line that is drawn from Sept 2017 low meets. The intersections of these 3 lines is marked by 'A' on the chart.

Barring some unexpected calamitous news, a bounce from 'A' is almost certain (an unwise comment on my part). It's entirely possible that it may bounce off 'A' a little earlier (i think not).

After it bounces off  'A' - not if, but when - it would naturally move to the upper channel to 'B'. The interesting question now is, would it break out to 'C' and ends this correction or continues to pull back to 'D' ?

There's a good chance that 'B' would encounter strong resistance because the 50 DMA would cross 'B' by then.


Actually this question is irrelevant, and don't even need to ask. We just need to wait until it gets to 'B' and see what the prices do next. No need to speculate.

If price doesn't break below 'A' (a very likely scenario barring any disastrous news), i'll enter a long trade there, and watch like a hawk when it gets to 'B'.

BTW, if this correction bottoms at 'A', then this represents a 42.8% drop, which seems like an average pull back in the Bitcoin price history.




No comments:

Post a Comment