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Bitcoin again

Almost two months ago I posted “Bitcoin charts look ugly” and today we are almost there again. This week SEC postponed decision on bitcoin ETF’s and it caused a stormy wave of selling.  It was already third attempt by VanEck, global ETF provider, to get approval – first two rejected and this one is postponed by SEC. Market reacted the way it reacted, so bitcoin is at bottom USD 6200 price level as I am writing this – slight Sunday bounce.

So far this support sustained but every rally attempt – in February, March, May and July – was not successful and every rally stalled at lower maximums. It is alarming signal and for me it also alarming  because 6000 support level has been tested several times.  Old chart wisdom says that with every other attempt the probability of breaking the support level increases.

If price breaks this support eventually, there is a huge risk of panic sell till 3200 and 2500 area. At the same time, this level has proven to be a good buy level, so many will do just that. Fans and enthusiasts and those who firmly believe in bitcoin will buy. Risky but worth to try, just remember:

  • tight stops  5-8 % lower
  • be prepared to lack of liquidity in case of panic selling.
  • next levels are 2500 and 3200 – and bitcoin can stay there for years.

Have a nice week !

Fuad