Following the fall on the stock market, we had a big fall in Bitcoin as well. As in the SPX , Bitcoin has hold its fall around the MME72, the 23.60% Fibo retracement and one of the inner canal support, so we have really strong buying force around here.
The last 3 candles we ones with long shadows, confirming the strong buying force: As soon as the price fell beyond the above mentioned supports, it has returned to areas above them. Also we had an almost form on 16/08, which could be signaling a reversion on this last movement.
The has fallen to the oversold area and has gotten out of there real fast. On the other hand, is still showing that the movement has momentum.
With all these indications, I believe the price shall go up til it reachs one of the following resistances:
- Around $12.000 (Upper canal resistance)
- $12,780 (23.60% inverted Fibo retracement)
- $13,890 (0% Fibo retracement and probable upper MME27 band)
What to do?
- In an allocation strategy, now it is an excelent moment to buy add more Bitcoins to your portfolio.
- For a speculative shot, I would buy now and put a Stop loss around $9,700, bellow the support areas mentioned in the first paragraph, or bellow the last lowest shadow, around $9,450
In case it falls, we shall have supports holding the price in the following areas:
- Around $9,800 (canal band support and 23.6% retracement)
- Around $9,000 (lower canal support)
Leave your thoughts bellow.
What will you do knowing this?