Bitcoin's Over Sold Bounce - Confirmation Looms
It doesn't take much for us to get excited these days. Bitcoin got one big rally day and people are shouting the bottom is in.
The New Line In the Sand
The 3,700 area was our next downside target and possible support. Thus the fact Bitcoin found some support at the next support level makes a little bit of sense.
When price hits a support level often times it will get a bounce off of it, especially when things are oversold which bitcoin certainly qualified as given the recent down move.
If you look at the chart in the post you will see we got the big green day that took us right to the 10 day moving average (blue line). That is something I use as a gauge for price being very over sold or over bought.
Now that we are flirting with it - and you may notice it's the area where price action lost some steam - we are no longer in a very oversold environment.
The Next Step In the Game
Basically what we are looking out for now is if price will in fact confirm that test of 3700 and maintain some of today's gains. When I look into shorter time frames I see some consolidation in the 3,900 area so if we can stay above that and then push higher a further move up could be in the cards.
The opposite scenario is if we come back down to test 3,700, then we must sweat out holding that level otherwise we will likely touch the 2,900 area.
Published by ScaredyCatGuide
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What percentage are you in cash as the long term trend figures itself out. My weakness is I am so often fully invested.
Honestly, I'm basically fully invested. I did sell a chunk of steem at 80 cents but instead of holding that for crypto purchases lower it went into fiat as I scramble to raise money for a real estate deal I'm working on.
Got some things going on in South Carolina with mortgage notes (not to far from you). It's a great opportunity but trying to find the capital. Let me know if you are anyone you know is interested in notes. Its a really clever business model the guy has who is selling and is centered on selling land with manufactured homes on installment contracts.
Look up Brian Fossil and he may still associate himself with East Coast Homes. He is an investor who made a lot in the manufactured home business but backed out when it dried up. He knows a lot of the players.
Brian Fossell
Awesome man, will do!
Love these breakdowns.
Thanks. Good power and energy to you.
Thanks! Glad they are of use :-)
Agreed... higher lows need to be set and respected to reverse the trend!
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I gotta say, I love how you make this stuff easy to understand. You explain these graphs and the trends in ways that are so simple, yet convey so much relevant information. I love it!
Thanks, much appreciated! Definitely try to keep it in layman's terms.