Bitcoin technical analysis | Forexlive

Here is my bitcoin technical analysis and price forecast with a 4-to-1 reward-vs-ratio trade idea. That is quite aspiring so partial profit taking can be executed along the way, at your discretion. The stop loss $21575. The take profit target is at $10657.

I hope the crypto gang doesn’t kill me for this trade idea. But I gotta call them as I see them, mates. Some HODL

HODL

Hodl, or hold on for dear life is an expression relating to the cryptocurrency community that advocates holding an asset rather than selling it. In theory, this term can apply to any asset, and implies refusing to sell or offload any asset regardless of temptation, fundamentals, or performance. Hodling dates back to 2013 with its roots in the crypto community, namely Bitcoin, which surmises an ever-growing trajectory of the crypto coin. At the time, Bitcoin had fallen nearly 39% with news breaking of regulation in China. Rather than offloading Bitcoin, investors instead opted to hold onto their assets despite negative selling pressure. In recent years, few if any markets have been more volatile than cryptocurrencies. Still, certain coins such as Bitcoin have weathered the storm and seen surging prices even after cataclysmic declines.2020 is a prime example of this, which saw Bitcoin plunge to multi-year lows, only to rally and threaten $20,000 at the time of writing. Should You Be Hodling?Hodling itself is not a viable strategy, but merely a state of mind. Investors are not encouraged to trade with this in mind, despite many being rewarded over the years for retaining crypto assets. A good foil is the US stock market, namely the S&P 500 index. In theory, this index has increased over time regardless of how many collapses or declines it faces. Hodling should be approached with caution, having resulted in many crippling losses for owners of altcoins.

Hodl, or hold on for dear life is an expression relating to the cryptocurrency community that advocates holding an asset rather than selling it. In theory, this term can apply to any asset, and implies refusing to sell or offload any asset regardless of temptation, fundamentals, or performance. Hodling dates back to 2013 with its roots in the crypto community, namely Bitcoin, which surmises an ever-growing trajectory of the crypto coin. At the time, Bitcoin had fallen nearly 39% with news breaking of regulation in China. Rather than offloading Bitcoin, investors instead opted to hold onto their assets despite negative selling pressure. In recent years, few if any markets have been more volatile than cryptocurrencies. Still, certain coins such as Bitcoin have weathered the storm and seen surging prices even after cataclysmic declines.2020 is a prime example of this, which saw Bitcoin plunge to multi-year lows, only to rally and threaten $20,000 at the time of writing. Should You Be Hodling?Hodling itself is not a viable strategy, but merely a state of mind. Investors are not encouraged to trade with this in mind, despite many being rewarded over the years for retaining crypto assets. A good foil is the US stock market, namely the S&P 500 index. In theory, this index has increased over time regardless of how many collapses or declines it faces. Hodling should be approached with caution, having resulted in many crippling losses for owners of altcoins.
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‘ers may want to wait with scaling up further buy positions, for possible lower prices for BTC. Others may want to consider hedging their cryptocurrency portfolios. Just an idea. Do your own research and trade bitcoin at your own risk.

As the following BTCUSD weekly price chart shows, bitcoin is continuing to show bearish signs. Marked as ‘1’ below, it has crossed down the bear flag (red channel), and tried to rebound off of the long term green support line, but failed again. That was a good place for a rebound should one be in place. It is now also below the important $20k round number, below the December 2017 highand very close to this year’s low, thus increasing the chance of retesting that low, in the near future.

BTCUSD weekly price chart showing bearish signs

To complement the bitcoin analysis, please view the detailed video below that also includes the trade idea.

Please do your own research and feel free to see a variety of other opinions within the ForexLive technical analysis section.

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