Cryptocurrencies

Bitcoin Will Likely Consolidate or Pullback Over Coming Weeks

I know we all want to be bitcoin bulls right now, and sure price could push for 10k at anytime.  However, the orderly price action, the better for the long-term price action speaks otherwise and I’m going to walk that path.  I am the scaredycat after all!

The Weekly Chart Tells a Clear Story

Looking at the daily chart you really don’t see this.  When we look at the weekly the picture becomes clear.

After 5 straight weeks higher we got a nice doji candle last week.  This shows us indecision and that buyers may have run out of gas for a bit.

Since it pushed above the 8400 resistance area there was hope we would just consolidate there (which is still very well possible if prices push back above 8k during this week).  That doesn’t leave much room to operate though, thus I’m more inclined to expect a pullback as we have started to get early in the week.

Between the doji candle giving us the reversal possibility and the 10 period moving average (blue line) being well below current price….there are more factors for selling pressure at the moment than upside pressure.

Of course this is just an opinion based on the chart.  Anything can happen, but I am expecting some backing and filling over the next week or two before another move higher.

Hopefully I can pick up some more bitcoin  around 7300-7400, and if things happen to get sold off hard than 6800 is my next buy target.

Preferably neither of them are revisited and we can just ride higher.

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