There is a lot of emotion among investors when it comes to cryptocurrencies in general and Bitcoin in particular. The really important thing in this type of environment is to stay cool, only focus on the facts that really matter, avoid mainstream news. Therefore, a thorough understanding of the price chart of Bitcoin is imperative. We share lots of details and insights with premium cryptocurrency subscribers, but this article is a ‘sneak peek’ which we also share in the public domain: how to read the Bitcoin price chart for guidance in the crypto market in 2018 and beyond?
People tend to ask how it is possible to do a Price Of Bitcoin Forecast of 50,000 USD if Bitcoin continues falling. Same question applies to this other major cryptocurrency: is our Stellar Lumens Price Forecast of 4 USD still actual?
That’s very simple, our forecast is a longer term forecast based on the insight that cryptocurrencies did not reach their final top as of yet. The simplest way to know is to look around and compare with the dotcom and housing bubbles: back then, literally everyone was so deep into tech stocks and debt (housing in the US and other consumer debt elsewhere) while today hardly anyone owns cryptocurrencies set aside uses them. On the contrary, after the recent crash, almost everyone anonymously wants to avoid cryptocurrencies, among the general public. There is no major top yet because of this primary reason, and many other reasons.
This is how to read Bitcoin’s 2018 price chart
It is easy to get caught in the news feeds, and really get lost in what to make out of the current price action in Bitcoin. InvestingHaven’s research team is known to simplify things, and start with the chart. It’s the opposite way to look at markets and investing, but one that has appeared to be extremely effective if applied correctly.
Bitcoin’s price chart for 2018 is an easy read, though we have not seen this way of reading Bitcoin’s chart anywhere before.
Essentially, the $6k price level is the ‘line in the sand’. No surprise because it got tested 5 times in 8 months, it’s the only price point that got tested so many times. So it must have a special meaning. No coincidence that this price level is the one that got tested right before the parabolic rise of November and December started!
What exactly does this mean? How to translate this into actionable insights?
The simplest way to interpret this: all weak hands which entered the cryptocurrency market, especially Bitcoin, since it started rising at a parabolic and, therefore, non sustainable pace, since October 2017, are leaving the arena.
In other words, by the natural forces of supply and demand the market goes back to October 2017 when there was a healthy uptrend to set a price equilibrium. Weak hands are the ones that got in between $6k and $20k, and most of them sold in the meantime, unfortunately for them, probably feared by toxic news and not being able to handle red figures in their account.
This is of course a black-and-white way to summarize a situation. The reality is a bit more complicated, and not exactly the same we phrased it.
Still, we get very close to the essence of what’s going on, and why Bitcoin has fallen for the 3d time in 5 months to this magic $6k level, which, again, seems to be holding pretty strong (at least, so far).
Eight months of gains got lost, we go back 8 months in time, 8 months of buyers have sold … all different ways to express what is going on in the Bitcoin market.
InvestingHaven’s research time reiterates that this is a healthy pullback. If $6k Bitcoin continues to hold strong, we will become super bullish, and it will be the ultimate proof that we are correctly reading the Bitcoin price chart for 2018 and beyond.
Read more at: Investing Haven
