It seems the calm anticipated the storm as bitcoin tests a key support.
Keep an eye on the charts this Thursday as bitcoin has started to break down the £5.5k ($7.7k) key support level. Interestingly, one can see the biases of most traders reflected through their forecasts, with regards to what will happen over the next few hours.
Such biases are currently augmented as bitcoin is standing on the edge of a major symmetrical triangle — a reliable pattern that usually signals a continuation of the previous trend. However, if bitcoin breaks below £5.3k ($7.5k) it means the pattern is invalid.
On one hand, we have the bulls who believe that we could go lower, yet their perception of the market’s valuation at this level “is fine”. Furthermore, we have the neutrals, which analyse both bullish and bearish scenarios — although feel that we are going down “sooner rather than later”. Finally, the more bearish traders believe we need a double bottom at £4.3k ($6k) to consolidate before the start of a next bull run. Use stop losses and move slowly.
Feeling bored during these dips? We’ve been sharing tips on how to profit in these bearish times since January. With some more extreme bears predicting a £2.1k ($3k) target for bitcoin, it’s important to reinforce that you can even profit during times like these.
For the ones with less time, the famous bitcoin bull, Tom Lee — former chief strategist at JP Morgan and head of Fundstrat Global Advisors — defends ‘hodling’. He states “it’s difficult to time the bottom and buy back the assets you decided to sell”. Check ether’s current price movement as an example.
However, more active trading can be greatly profitable. Consider the profits made by those who shorted litecoin after this week’s LitePay cancellation news. Conversely, act with caution as large traders can influence the market. CME’s bitcoin futures volume is “recording record volumes right now” — although in the grand scheme of crypto trading it only represents about £70M in daily volume. Learn how to surf their waves.
As it’s Easter Holiday in the UK, the daily report will resume on Monday. Worry not — you can still follow the latest news and analysis over our latest Telegram announcements channel: LBX News.
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