Bitcoin takes off

Alan Penny

5 August 2019

3 min read

Bitcoin Trading

Bitcoin markets exploded to the upside to kick off the week on Monday, gaining roughly 12% of the time of writing. Looking at this chart, you can see that the $12,000 level is offering a bit of resistance, but it makes sense as this market does tend to move in $2000 increments. This is a sign that a lot of institutional money is starting to flow into Bitcoin, as those huge orders need big figures.


bitcoin chart


The uptrend is very much intact after the massive move on Monday, showing a bit of continuation. As we broke above the shooting star from the previous session, that’s a sign of strength. As we are crashing into the $12,000 level, it could be that we get a little bit of a pullback. However, that pullback should continue to offer a bit of value, because we are most certainly still in a strong uptrend.

Beyond all that, we have the 50 day EMA which sits just below the $10,000 level which in and of itself will offer significant support. This is a bit of a “double whammy”, considering that the market has been so reactive to the $2000 increments, then beyond that the $10,000 level is a huge round figure. The 50 day EMA being sliced through by the trendlines to the upside also gives me reason to believe that the $10,000 level will now be the “floor” in the marketplace.

Potential move

The potential move for Bitcoin is to break through the $12,000 level, and then reaching towards the $13,000 level before reaching towards the $14,000 level. That of course is the most recent high, and of course we can finally break through there and continue to go much higher. That being said though, this is a market that has been very strong, so expect the occasional pullback. That pullback should offer plenty of value in an uptrend that is very strong.

Ultimately, if we can break above the $14,000 level then obviously we could be looking towards the $15,000 level which of course is a large, round, psychologically crucial figure. Pullbacks could be sudden, because we have a lot of geopolitical fear out there. That being said, there will be the occasional back and forth due to hope in fear.

Keep in mind that the market is likely to be noisy due to the issues out there, so therefore you should not be shaken out of positions. However, what you can do is take a little small bits and pieces out and build up larger positions as trained trading dictates that we should have plenty of opportunities to make large gains if we are patient enough, and of course hold a core position. However, if we were to break down below the $9500 level, then we have to rethink the entire situation. All things being equal though, there seems to be a fear of holding too many Fiat assets right now, as we have seen not only Bitcoin and other crypto take off, but we have seen precious metals do the same.

Written By
Alan Penny

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