I know there are a lot of cryptocurrency lovers out there and I don’t mind analyzing and even trading it myself. It is obvious that Bitcoin and most other cryptos were in a downtrend mode since the middle of December. The move down was very dramatic erasing a lot of profits by correcting about 67 percent. It is quite a magic number as the move down represents the third level of Fibonacci retracement. In most cases securities resume their trends when the number is hit.
Looking at current price action you might see that after the crypto hit
5860 level it bounced really hard indicating there is some strong buying in the
area and possibly indicating that the downtrend can be over. Therefore, I
assume a move up may resume any time soon and Bitcoin will revisit 20 000 level
sooner rather than later, possibly by the end of this year.
Disclaimer: Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
Technically speaking I expect a move up in a zig zag way (wave up, wave
down with higher highs and lower lows). There will probably be a bottoming
process now till the crypto stand firmly on both feet, so to speak and we may
see it revisiting 5900 level again, before making another rally. Any move down
is probably a good opportunity to buy and buying on dips will be a good strategy.
So, to sum up, I expect Bitcoin to resume its trend and excellent
opportunities might be ahead of us soon.