Bitcoin isn’t something we write about a lot. In fact, this will be our first venture into the benchmark cryptocurrency. Truth be told, this author is regretful, maybe a twinge spiteful, for not buying it on a friend’s advice before it hit triple-digits.
Bitcoin has been on a bit of a run, let’s examine its chart and see what might be next for Bitcoin backers.
The crypto ran out of headroom on its Relative Strength Index (RSI), touched overbought and immediately attracted some profit taking. The spike higher and dip comes on the heels of Bitcoin bullishly breaking out of a short-term downtrend. Longer-term, Bitcoin’s trendline is on an upward trajectory.
Based on our technical analysis and experience, it’s our opinion that Bitcoin could see some more near-term downside, perhaps in the neighborhood of its 50-day moving average of $27,706.46. From there, a pivot higher and testing $31,000 looks logical, in our estimation. And that’s where Bitcoin gets very interesting. If crypto bulls can push Bitcoin past 31k, it’s one hop to $35,000, two hops to $40,000 and three hops to $45,000, in our technical view. Beyond 45k, and it could be off to test its all-time high. As for downside, closing below $27,000 gets a yellow flag which turns to red under $25,000.
Investing in Bitcoin is risky and only for investors who can afford to lose money in short order.
Rich Meyers