Is Bitcoin Overpriced? | Bitcoin TA
Hello after a long time. Today I will try to draw a chart... as always. And the question is what am I going to write about when the Bitcoin price seems not to move at all.
Let’s summarize it. In the previous months, Bitcoin has attempted to attack 6100 USD, and has always been able to get over that number. That is called support and in this view, 6100 is a very strong support. On the other hand, it is even impossible not to notice the resistance which is somewhere around 6825 USD. This resistance is formed gradually and although there were several breakthroughs, the price always returned below it.
Support and resistance are already given in the long run
Something tells me that support is made up of old hodlers, while resistance is created by those who leave the BTC market or need to sell for other reasons (for example miners). These are basically new traders who have set 6825 USD as the highest price for which it does make sense to sell.
Whether we stay above 6100 USD depends on which of these two camps will eventually be stronger. If there is some pressure on sales, buyers will retreat, accepting a cheaper price, some even may start panic selling. If there is a breakthrough, then the sellers can retreat and start selling higher. However, as the maximal price is constantly decreasing, it seems that there would be the ongoing pressure on sales, which ultimately results in going under 6100. You can speculate on that, but set a stoploss somewhere around 6900 USD.
Is bitcoin overpriced?
My personal opinion is that BTC is still overpriced. The ideal purchase price is somewhere in 3000 – 4000 USD. Let’s see if my opinion corresponds to the opinion of the majority. Bitcoin, at a price above 6900 USD, does not really have much to offer. Positive news are missing, and falling altcoins do not help much, too.
And that may be the main reason why Bitcoin stays so high. In the case of the fall of alts, Bitcoin is a temporary shelter for traders who otherwise hold alts. The end of the fall of altcoins may indicate a signal for BTC sales.
Recommendation: If 6100 is broken, then I recommend selling, but be aware that at that time almost everybody will sell. So it is possible to speculate and have sold already now and possibly to buy at a break over 6900 USD.
Disclaimer: These articles cannot be considered as an investment advice, and it is still a good idea to make speculation on bitcoin stock exchanges only with funds you can afford to lose. The high-profit potential is balanced with a significant risk of losing, especially here on the crypto markets.
Česky: https://btctip.cz/kurz-btc-analyza-je-bitcoin-predrazeny/
Amazing review here. It's fun to be speculative with just the right amount of research and experience to prove it, and I applaud you for that. However, I really do think btc will stay at 10k or above it pretty soon. The bull run last year was really unprecedented and unsustainable which explains why 6k is a good support. Now, with more people aware of what cryptocurrency is rather than just buying due to emotions, I really see much more value than it is ATM. I call 10k!
As a side note, I have come to this post because I used the #trading tag to reach out to you. As a Btc trader, you might be interested in Digitex. They're going to build a futures exchange for cryptocurrency with no commission fees.
Wrote 2 posts about them already. You can learn a lot about them here and here.
I shall be reading.
Thank you. :)
Bitcoin is trading in a fundamental range right now as the Miners need it to stay above $5700 to remain profitable. We may be looking at the bottom of this current correction. I think BTC will trade sideways for a month or so then start edging back upwards before the end of the year. With midterm elections happening there could be a quick boost to the price similar to when trump won.
TBH, this
Bear market is dead.
Rhino market approaching. :D
Lol
I do not quite understand why you see strong resistance in going above 6850?
There are three clear peaks way above it, while the recently formed bottoms seem to have changed from lowering to becoming slightly higher. I reagrd the current pattern as bullish rather than bearish.
My recent blog on this situation can be found here: https://steemit.com/bitcoin/@mikak65/breakout-area-analysis-on-current-btcusd-downside-is-this-the-turning-point
There may have been 3 clear peaks above it, but the price came down every time. When encountering this border, the volume goes up and the bull must be strong to break it. That is why I consider it to be quite a strong resistance. Let's see. I would only love seeing another bull run.
Ok. Thx. Me too.. :D One more note... The currently seen vedge here is a falling one which also traditionally is regarded a bullish pattern. Here's Invesopedia on the subject: https://www.investopedia.com/university/charts/charts7.asp
Well, now not both lines are falling down. And even if they were, you cannot be 100% sure when will it break and go upwards again. And you have to look at volumes, too. Because these patterns could be created by a whale which draws that as a trap for traders. :)
That is why in the article, there are always shown 2 possibilities of development.
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With the present value of BTC at $6,600, I can say it is not overpriced, BTC is still undervalued. I hope the bear market ends, and we hit the bull run 🏃as soon as possible.
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This is really sad because I have bought some Bitcoins at above $7,000.
Sorry for that. But you could end up much worse. Some weak-hands are selling with more than 50% loss.
I am a latecomer to the hype and speculation from October to December 2017 when it peaked at $20,000 - I thought the fall is just temporary on January 2018 and onwards due to my reading of articles predicting exorbitant rebounds of even up to 50k per bitcoin.
Luckily for me I did not buy at the 20k level.
Congrats. But I still think that in the long-term, buying at - for example - 16000 USD is not really a bad thing. You just need not to worry about your investment and try not to unnecessary speculate on BTC price. As many people say... invest only money you can afford to lose. I know it is hard to resist to those news talking about Bitcoin going to zero, but your emotions are not reasonable and these predictions are definitely not realistic, just as those talking about 50K at the end of 2017. To newcomers, I can only recommend hodling (maybe it is a good idea to sell it back to USD when the market is up, but again... there will be your emotions playing a big role, they will try to force you to stay in the bullish market... but you have to sell your BTC sometimes - if you are not so enthusiastic that you would rather wait for the world around you to accept BTC)
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I don't think it was a bad idea if you are interested in an longterm investment
Exactly. The market is probably bearish for now, but in the long run, you will (probably) not lose. Bitcoin has properties that Fiat currencies cannot have, Bitcoin is here to stay.
Bitcoin will exist until 2032.
After that there will be no need for it.
You are planning to destroy the life on our planet, aren't you? :O
lol !
There will be no more use for Bitcoin in 2032.
Don't you advocate communism and hope that we will live happily ever after without the need for money? :O
Sha-256 algorithm will be compromised? :O
Governments will successfully ban all cryptos? :O
Governments will deregulate finance industry so that we can choose currency that is actually backed up by gold and that will be eventually better for us than Bitcoin? :O
There will be no more use for Bitcoin, because all the transaction would take place on its second, third and fourth layer? :O
The west will loose its economic power to Asia (China) by 2032.
One of the major reasons if the not the reason Bitcoin had a this big rally is because Chinese use it to smuggle there money outside China driving huge demande for BTC.
80 % of terminals where in China.
Communism' socialism !? No not me to many people suffered because of it.
There is no way government will allow Bitcoin or any other token to replace the $ like many claim.
Let's enjoy this market for now. I think its still to small for them to intervene but wen it gets closer to a trillion + make sure to be prepared to exit :O
Lol..
I would say that's not a bad entry point considering it went to nearly 20K, just make it a long term investment and forger about it
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My friend has lost about 11k in bitcoin trading. It may be a small figure to some people but for us, it is really huge. If it doesn't grow, he's gonna be broke.
Oh, that is very unfortunate. I am sorry for him. I hope next time he will be more careful. As everyone says... Invest only with funds you can afford to lose. Stick with that motto.
looking at the chart 2017 was only the first Elliot wave i think in the next years when the rewards will drop 50% and with the new miners bitcoins will denfinetly perform better and with it all other major 20 crypto
Normal market cycle - what goes up must come down...
But the new bullish phase is already in preparation.
Maybe it might be another dip but buying now is not wrong if you are interested in an longterm investment.