Today caps off an interesting and eventful week of price action for Bitcoin. BTC currently sits at roughly $3870 on Blockmodo at the time of this writing. But where are things headed?
One of the most pressing questions right now wonders if Bitcoin’s price has bottomed yet, signalling a price reversal for Bitcoin, as well as the market.
Current sentiment seems to speculate a drop below $4k for BTC. This begs the question – if too many people are expecting that move, will it really happen?
— CryptoBirb (@crypto_birb) November 20, 2018
So what are the charts saying?
A quick look at the logarithmic daily candle chart shows an interesting trend line, dating back to March of 2017 and earlier. It would be interesting if Bitcoin were to respect this trend line.
Going back to the linear daily chart, Bitcoin almost tapped the $4,023 (roughly) support line a second time. This could possibly indicate some type of double bottom for a market reversal, although price was slightly shy of touching the drawn support line. (But exact support lines do indeed vary from person to person, depending on who drew them.)
Going down to the hourly chart shows yesterday’s pennant broken to the downside. Although price still appears to respect the upper pennant trend line. Price has been ranging between roughly $4k and $4.6k.
Tommy Mustache on Twitter posted about Bitcoin’s previous price falls, submitting that Bitcoin is currently right in line with previous numbers.
I panic sold Amazon at $8 during the 2001 Dotcom crashed. I believed it went to as low as $5.50. After that, Amazon has risen over 30,000% now.
— Tommy Mustache (@tommyp408) November 23, 2018
John McAfee also posted an interesting comment on Twitter, comparing current crypto markets with Amazon, referencing the famous dot-com bubble, in a tweet looking more at the big picture of the current situation.
Amazon lost 99% of its value in one drop of the market in its early years. If someone purchased the stock at it's high, just prior to the collapse, and held it, every dollar spent on the stock at it's high would be worth almost $100 today. Words to the wise Crypto investor. pic.twitter.com/9M7uJXk7ry
— John McAfee (@officialmcafee) November 23, 2018
One thing is certain – no one knows what tomorrow will bring.
*This article includes opinions from the author and is not in any way financial advice. Writing about price levels/charting is purely speculation, subject to speculatory and other bias. Nothing written is any kind of advice whatsoever.
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