Hey guys, Liam here.
Sorry I haven't posted in a few weeks; I've been getting some important stuff done on the site, so I haven't had much time for trading or posting updates. I'm back now, though, so you can expected my daily updates like before.
Bitcoin Analysis: Will The Drop Continue?Okay, so on Tuesday, after hovering between 3800 to 4200 for a week, a huge decline caused Bitcoin to fall below 3800, which had acted as strong support level since late December. The break of this support, and the severity of the break, is a strong signal we are now going to see the price fall back to 3000 – 3200, since that’s the last point where we saw a significant reversal took place, back in December.
Whoever caused the reversal from 3000 – 3200 in December obviously didn’t want the price to fall lower, so if the decline we’re seeing now reaches this point, it’s likely whatever group of traders and investors caused the reversal will come into the market and buy again, causing another reversal to take place.
I’ve marked a buy area around the 3000 – 3200 that encompasses the points where the people who caused the reversal back in December would have bought. If the price falls back to 3000 – 3200, there’s a very high chance it will reverse somewhere inside this area, so keep that in mind if you plan to buy or sell Bitcoin if the price continues to fall.
As for the short term, a large bearish hammer candlestick (a candle with a large wick – marked with blue arrow) formed a couple of hours ago, which is usually (but not always) a signal a decline is about to take place. So we could see the price continue to decline over the next few hours.
For the moment, I think it’s best to stay on the sidelines and await more developments.
The price isn’t really doing much at the minute, so it’s not easy to determine whether it’s going to rise or fall. I think it’s more likely to fall, but that’s just my opinion. It could easily swing either way, to be honest.
If anything of note happens, I’ll be sure to keep you updated.
Have a good day.
Note: I've added lots of new content to the site, including a couple of guides found on the resources page.
Check it out if you're interested:
https://www.cryptotradingschoolonline.com/