Bitcoin: ABC Correction Pointing Towards $8,500

Bitcoin: ABC Correction Pointing Towards $8,500


Summary
  • The weekly chart is overbought and issued a sell signal.
  • The commitments of traders report points to lower prices.
  • The recent pullback has already cooled down the overoptimistic sentiment.
  • Until October the seasonal pattern is unfavorable for bitcoin.

A a ratio of 0.12 bitcoin for one ounce of gold, gold seems pretty undervalued.

Bitcoin (BTC-USD) had a spectacular rally between April and June. Now it has pulled back sharply. Investors and the so-called "hodlers" are getting their emotions tested once again by the volatile cryptocurrency.

In this analysis we will explain why this correction is no surprise and will figure out where the lows might come in and how you can profit from that.

Review

Since the low on December 15, 2018, at $3,127, bitcoin has managed to stage a spectacular recovery in recent months. With a high of $13,887 reached on June 26, 2019, the most important and largest cryptocurrency has more than quadrupled within just six months!

In the last two and a half weeks, it has pulled back sharply to $9,620 before increasing to $13,195, but so far the June high has not been exceeded.

On the weekly chart, the wild ride of bitcoin is clearly visible. Although the moves are huge in both directions, from a long-term perspective bitcoin keeps progressing steadily upwards.

With the recent price spike to $13,887, pretty much 61.8% of the previous downswing has been recovered. At the same time, it has created a natural resistance zone where savvy investors have taken profits and reduced their long positions. Read more




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