Technical analysis on the Bitcoin market has been giving contradicting signals for me lately, not surprising, seeing that the News and FUD at this point is also contradicting.
Even though I trade technically, I would like to give my opinion about the fundamentals at this point.
There is quite a lot of bullish news, such as exchanges exploding with new users signing up and struggling to cope with the increase.
Adding fuel to this is the announcement that the CME (18 DEC) and soon after NASDAQ, will be adding Bitcoin futures trading.
This can be both a blessing and a curse when it happens, but as it stands right now I don’t see many commercials selling off until our next “dooms day”.
We have the DragonSlayer FUD predicting that BCH=BTC soon. I have no idea what to make of this to be honest, however the BCH charts have been looking very good vs btc, since $311 and now trading above $1000.
The bearish news that kind of concerns me is every world bank and big hedgefund branding their own fud against Bitcoin, and it is important to note that in the same breath they are pro crypto.
With all that said rarely do I make short term trading decisions based on fundamentals alone, and in general I am a purely technical trader, which means I pretty much ignore everything I stated above and just pay attention to the markets, with that said, lets take a look.
The market has been very volatile since GDAX and Coinbase went down for a while on the 29th, where after the market recovered in volatile fashion and prices are again aiming to the 11500 mark.
At this point I think the market can go either way and I am planning to go long should we break above 11500 – 11600 and consolidate.
On the flip side I am looking to short again at similar levels that I posted recently. I would look for support to fail at 10400 – 10000, with 10k being a major psychological support at this point in time.
Below 10k we can look towards 9800 – 9600 first target with 9000 the second. Should 9000 fail I will look towards lower levels and ride out the trade with a stop loss.
The ichimoku cloud is painting a nice bull flag so please consider any shorts in these conditions HIGH RISK.
These reports are intended for educational purposes, please do your own research before trading crypto. Safe trades!