Bitcoin recently, after a sharp drop, is trading sideways and we are currently trading near the top of the range. Our vision of the basics, feeling and techniques below …
Bitcoin has been trading in a 32 / 38k range since the big sale in May. This is the main range, but traders have tried to push it both down and down, but these outbreaks have simply returned to the range.
We expect the upward movement to fail. We are looking for a step towards the bottom of the range and in the long run we expect the bottom of the range to give way, but there are many traders who are very bullish:
“Bitcoin returns to the track around $ 100,000” This projection is from Bloomberg Intelligence analyst Mike McGlone and is very bullish. What is your logic behind the view? McGlone believes Bitcoin is poised to turn the $ 40,000 level into support:
“This year is the first time for Bitcoin to take the next step in its price discovery stage and we see an updated bullish market. It looks like Bitcoin built a base of about $ 30,000, which looks like $ 4,000 at the beginning of 2019, and we see performance parallels that could make the reference cryptocurrency well on its way to $ 100,000. ” .
We do not share this view, the fundamentals have changed behind the graph in the last 3 years. In our view, Bitcoin will never gain widespread acceptance due to the hostility of central banks and regulators who are now more vocal and active about Bitcoin than a few years ago.
The fact remains that its main use is organized crime and it is estimated that criminal money accounted for about $ 200 billion last year in transactions.
Bitcoin has no core value and will never attract large institutional money, so it cannot be seen as a store of value or a safe haven and trading in gold the traditional safe haven far outperforms Bitcoin.
In the short term, we believe Bitcoin is a sell-off at the top of the range for another daily support test, but if that yields, we could see a massive drop to the 1,000 level of the monthly chart as retailers buy and hold traders who have a large proportion of open interest.
When it comes to trading the short side of the daily chart, our view of the key levels is below and also the long-term monthly chart.
Research provided by LearnCurrencyTradingOnline.com
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