27 Sep Bitcoin Analysis
Based on the Bitcoin interest that I got on my last blog, I thought I would share my chart analysis and see which price direction it will head next. The price of Bitcoin has been well documented to be extremely volatile and is definitely not for the faint of heart. Prices can swing wildly by $100’s of dollars within hours and is very news driven. Since hitting a record high of $5,000, it has dropped to as low as $3,000 based on news out of China that the government was not favourable towards bitcoin. FYI. China is one of the leading countries in mining and investing in bitcoin. Also, we had prominent people in the US including JP Morgan CEO, Jamie Dimon declaring that Bitcoin was a fraud. These types of news certainly drove down the price of Bitcoin. However, as I write this article, the price of Bitcoin has risen back to $4,072. So what direction is the Bitcoin price heading next? Well, let’s take a look at the chart below.
You can see on the chart that the price of Bitcoin was only $800 at the start of 2017 and has risen as high as $5,000 as recently as early Sept. It fell sharply afterwards to a BIG price support level at $3,000 where it was previous resistance in June and August. It then rebounded sharply to around the $4,000 price level where it is currently at. In my opinion, as long as it stays above $4,000 which is a BIG ROUND Whole Number then it should be able to at least reach around $4,500 which is another price resistance level. I have a feeling that $5,000 could be the top this year for Bitcoin but if there’s any positive news coming out or perhaps there’s eroding confidence in paper currencies then we could see even higher prices. One thing that is guaranteed is there will be continued volatility in the price of Bitcoin and that’s a good thing for traders like us.