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BTC has been under significant sell pressure due to the infamous Mt. Gox liquidations and recently the German government selling thousands of coins. This has negatively affected sentiment, which is reflected in the recent price action. It looks like we may have gotten a reprieve the last several sessions, but is it going to hold?
Currently, BTC is between two major levels of interest: $51,000/$52,000 and $56,500. The key Fibonacci levels are $51,392 or .382, which we consider strong support, and $59,845 or .786, which could be seen as resistance (at least temporarily).
Multiple indicators suggest that BTC could have found a temporary bottom, but until it starts pushing back through the major resistance levels, we could see a test of the $51,000 to $52,000 area. We would stack bids in that zone for those looking for a longer term entry point.
This strategy has served us well with our crypto AI trades, which were discussed in this post: https://wallstreetwhisper.com/is-it-time-to-buy-ai-crypto-again/. If you placed bids where we suggested you should be in the black on those positions.
We are in a very volatile market. The U.S. election cycle is heating up, global geopolitical events are concerning, and while some of the larger countries are supportive of crypto and BTC, others still seem to be sending mixed signals.
In the end it’s likely all noise. BTC provides the single best way to expose your portfolio to an asset that is deflationary in nature. The image below illustrates this clearly!
Perhaps the best “trade” is buy and hold. If you do trade, trade responsibly.