Bitcoin Possible Short Term Pullback
Updated
Bitcoin has reached a new ATH and has found resistance at the $4750 level. As you can see on the chart this price is also near an important Fibonacci extension level.
It is about to test the $4750 level again as I type this. If it fails to break resistance a short term pullback is likely. The MACD lines are crossing, confirming a possible short term downtrend. The MACD indicator also shows signs of bearish divergence.
Conclusion: Bitcoin is likely to go down, especially if it fails to break resistance.
It is about to test the $4750 level again as I type this. If it fails to break resistance a short term pullback is likely. The MACD lines are crossing, confirming a possible short term downtrend. The MACD indicator also shows signs of bearish divergence.
Conclusion: Bitcoin is likely to go down, especially if it fails to break resistance.
Note
Since I posted this idea Bitcoin went down by around $100, only to then go back up. It has now reached a new ATH of ~$4840. This is a very important level, since Goldman Sachs analysts called a top for around the $4830 mark. Even if they cannot foresee the future they have some of the best market analysts in the world and their analysis has a lot of influence on other people.Conclusion: We might have reached a very strong resistance level now. I am still bearish, especially when it comes to the short term picture.
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