For 10 days, the upward movement of Bitcoin stagnated at a fairly high level. A look at the logarithmic 4-hour chart of Bitcoin (Bitstamp on TradingView) shows the development of a wedge, which is now getting closer and closer to the weekend and sets the Bitcoin before a decision. Judging by the momentum, which is clearly pointing upwards, and evaluating the wedge generously as a bull flag, we are facing an outbreak of Bitcoin upwards beyond the striking yellow line from 8,500 USD (Bitstamp) directly towards 9,500 USD and perhaps 10,000 USD. That does not sound bad. And would be a nice view of the weekend.
With an outbreak down, which of course has a likelihood, this could signal the start of a larger correction that would drive the Bitcoin down several thousand dollars over several weeks. You know that I still assume that this correction will come. I just do not know when and from what level it starts. Bitcoin has doubled in the last 55 days. Would it continue at this rate, we would be in the summer at 16,000 USD. That can not be.
For my part, I currently stand with 97% cash quota in my eToro account CryptosWithB66, which is based on this blog as a real account, on the sidelines and look at what happens. I can already see in my mind’s eye one or the other comment on my blog, which says that the statement that it could go up or down, was the stupidest thing I´have read. I would like to emphasize again that I have no glass ball and that I do not consider it my task to predict the movement of Bitcoin like a soothsayer. For me it is important to be prepared for the possible movements of Bitcoin and to be able to react (!). And currently the situation is anything but clear. But when it dissolves, then Bitcoin and Altcoins get really moving. And if it’s a move down, I do not want to be in with long positions.
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