Today let’s talk about Bitcoin and the situation developing around him. In particular, I would like to highlight the different predictions about prices.
Let’s start with the fact that I personally configured in a bullish against BTC for a few months, while he holds key support level at $6 000. However, there is still the risk of breakdown of this level and in this case what should we expect?
If the price goes down, you need to understand how much it can drop. I’ll show you one popular method of technical analysis to determine this — symmetric projection.
In the framework of symmetric projections the recent peaks measured in Bitcoin (in blue) to strong support level (marked in red). 100% projection of these peaks below the support level and give us an indication of how much may drop the price, in the case of further declines. Thus we find that our key support level after $6 000 are $4 500 and $3 500.
Many may think that the price of BTC will never stoop so low, but it should not be so confident, as markets can move beyond conceptions. Remember that markets can surprise, such as last year Bitcoin has risen from $1,000 to $20,000 and no one could predict.
If we consider the weekly chart of the BTC, we see a strong support line, which is a simple moving average for 200 weeks.
Now she points to a level of $3 100, which will be another key support level in case of negative developments. Most likely it will be the lowest possible price levels for Bitcoin.
I believe that if price reaches the above levels, then they will form a bottom in the $3 500-$3 100. It is at this point will come to the market and buyers begin to accumulate Bitcoin.
My personal point of view for several months is that the price will go higher. I was expecting it in October, but apparently it will happen in November. While the price remains above $6 000, the probability of the upward movement to $8 000-$10 000 from 60% to 70%.