Bitcoin et al – look out below!

 bitcoin daily chartIf it wasn’t clear already, the next few days for Bitcoin investors is likely to be traumatic and seminal as the daily chart for the cryptocurrency continues to develop technical, analytical and structural cracks which are likely to see this market fall, and faly heavily once the support region at $10,000 is taken out. This has been building for some time, and despite the influx of buyers in the last week, these have been in insufficent numbers to halt the heavy selling, and in a supply and demand driven market, a lack of buyers can only lead to one thing. A move lower, which is what we are seeing now, with Bitcoin creating a classical pattern of lower highs and lower lows.

Once the price moves through the psychological five figures and down to four, the next question is where, and at what level buyers will return to halt the fall, and from a technical perspective the first pause point is likely around the $7,300 region. But once this is breached, $4,700 then comes into view, and below this $3,000. From here in the longer term a return to single figures is likely as sanity and common sense returns. This is not to say the blockchain technology is not here to stay, it most certainly is and in many different fields, but what is currently lacking in this market is trust, and until trust is assured, and the authorities have defined the regulatory paremeters, buyers will remain on the sidelines, frightened and traumatised by the wild ride, with the main beneficiaries being the IPO’s and the pick and shovel merchants.

By Anna Coulling

About Anna 1064 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

11 Comments on Bitcoin et al – look out below!

    • Hi – many thanks for getting in touch and this book is just in the final stages of proofing and will be available on Amazon in both Kindle and paperback in the next two weeks – hope you enjoy reading it – all best Anna

  1. Hello Anna,
    I’m currently having the same view although a part of me think this could just be another accumulation point between 9,5k and 13k. But that we’ll see. I’d like to ask you, if I may, where do you see that connection between BTC and IPOs from an investor point of view?
    Regards,

    TS

    PS I’ really a fan of your analysis and I began going through your books. Very inspiring!

    • Hi Tommaso – many thanks for your kind comments which are much appreciated and I have just posted my latest throughts and analysis for Bitcoin, which in general will also apply to all other crypto assets as they tend to move in lockstep together, so as you can see the technical picture is now very bearish and increasingly so! This is also reinforced by the heavy selling volumes and lack of buying volume and in this market of supply and demand – means everything. All best wishes and thanks again Anna – PS – you can read the post here Bitcoin sell off starts

  2. Funny. Been trading crypto for a year now. But recently read Your book about volume trading. After finishing revise my opinion on BTC/USD price based on Your volume technic. Straight away noticed that price will fall from 11000 down to 8000. Two days later Bitcoin is 8000$. Great book. Thanks for sharing Your knowledge with us.

    • Hi Wojtek – many thanks for dropping by and delighted you enjoyed my book on volume price analysis and it helpde in your trading of Bitcoin. You will be delighted to know I will be publishing a new book with the application of volume directly to the world of crytocurrencies. The book is called Investing and Trading in Cryptocurrencies Using Volume Price Analysis. This book will be avaialble on Amazon in the next couple of week on both Kindle format and paperback. You can find the details on the link here. Thanks again and so delighted volume has helped in your own trading – all best Anna

  3. More downside is expected, but be reasonable. While anything is possible, technical analysis is about probabilities and there is absolutely nothing to support the notion that we could move to single figures within the foreseeable future. There is nothing fundamental to support that notion either. Should BTC eventually be replaced with something else the outlook may change, but for now you’re just spreading FUD with no basis whatsoever and using your position as a respected trader in other markets as your lone defense.

    • Hi Steve – many thanks for letting me know and I believe this was posted there as I used the Trading View charts which I have also used with their permission in my book on Cryptocurrencies which is due out shortly. This is called Investing and Trading in Cryptocurrencies using Volume Price Analysis, and my hope in publishing it is that both speculators and investors will then be able to make rational and logical decisions based on this methodology. As I have said to someone else who suggested there was no money to be made by either, there will be plenty of opportunity for both. This is a market of supply and demand, and volume will then reveal when to buy, when to sell and when to hold, whether trading speculatievly or as an investor on a buy and hold. Whatever happens in the longer term, volume price analysis reveals the truth behind the buying and selling and in a market of pure supply and demand this is what will ultimately drive the price. This market is the purest example of Wyckoff’s first law of supply and demand. If supply outweighs demand then prices will fall and if demand outweighs supply then prices will rise. Since early 2017 the volume of buyers in this market has been falling away as risks and uncertanties rise and until the issue of trust is addressed in all aspects, from security to transparency and regulation, then the buyers will become increasingly nervous. ONly when all these issues are addressed and trust is established will the market stabalise. Only my opinion of course but volume reveals the truth behind the numbers – thanks again and all best wishes Anna PS – I do seem to have created a minor storm:-)

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