- Nouriel Roubini Pens an Anti-Crypto Letter, Calls Financial Regulators to Wake Up
- Married Singaporean Man Confessed to Hiring a Bitcoin Hitman to Kill his Ex's Boyfriend
- Japan Sets to Build a SWIFT-Like Network for Global Cryptocurrency Transactions
- France to Regulate Crypto Companies in Exchange for Regulatory Approval
- Tether Further Expands into Algorand POS Blockchain Network
Looking at the chart below, we can see that BTC is trading at around the $4,000 mark. The price is contained between channels with some false breakouts, and an upper limit acting as resistance at $4,161 and lower limit acting as support at $3,765. Since there could be false breakouts, it is not recommended to take a long position immediately after the breakout.
According to Dow Theory, BTC is currently appearing in an accumulation phase which is an area from where the price can easily shoot up, and is generally considered a great buying point, this is the time when informed investors (experienced traders and institutions) are usually entering their long positions. The price movements during the accumulation phase are traditionally slow. The accumulation phase often signals the end of a downtrend.
Price is moving between the channels with the upper limit acting as resistance and middle average line acting as support. We also see that the channel is shrinking, indicating lesser volatility which means no big uptrend or downtrend is expected in the near 2-3 weeks, and suggesting only swing trading opportunity.
Taking 9-day period moving (blue) average with 21-day period moving average (red), a bullish crossover is seen; and the price is above the 9-day period moving average indicating upward trend. So we can expect an upward rally with a high probability.
Considering all the factors above, it appears that Bitcoin is currently stuck in a sideways trend, with an upper limit acting as resistance at $4,160 and a lower limit acting as support at $3,765; so this opportunity can be used for swing trading.
Also, in sideways trend it is very important to pay close attention to Bollinger bands movement, and as the band will start expanding look for momentum as it will decide future trend. For long term investing it is good to buy around support and hold. Using Fibonacci and other above mentioned indicators, we can expect the price to reach $4,503 in 2 months or so.