BTC Falls Short of $51,000; Where To Buy Next?
Bitcoin fell slightly short of $51,100 as investors took profit and set the stage for a period of consolidation. Bitcoin has increased over 70% since bottoming out in July and has done so in a relatively short amount of time. Is it time for the king crypto to enter into a healthy cool-off period?
Let’s dig in.
Silver to Bitcoin’s Gold? The Case for Litecoin
Litecoin is a household crypto name that has been around for more than ten years. It was first created in 2011 by Charlie Lee as an attempted upgrade to Bitcoin and since then, has been a major beneficiary of Bitcoin’s global success, gaining credibility and a highly liquid market — all the while maintaining a top 10 position on crypto ranking sites like Coingecko.
Check out the full article here!
BTC/USD Tumbles after tapping $51,000
Bitcoin witnessed a rejection after an attempt to reclaim $51,000 — the top of a key long-term resistance zone which coincides with the .618 Fib level. Investors took profit and set the stage for bitcoin to enter into corrective territory shortly thereafter.
However, at the time of writing, bitcoin exchanges hand at $47,650 and have yet to set a lower low, rendering expectations for a broader market downturn potentially premature. On lower time-frames, Bitcoin is showing signs of a reversal that could take the coin back to $51,000 and beyond.
Specifically, as the price trends lower, the relative strength index on the one-hour chart is showing signs of bullishly divergent momentum. This is a similar situation described in the telegram channel, prices consolidate lower only to be bought up shortly after. As noted in the channel, this outcome is still a possibility. In order for it to have a high-probability outcome, BTC/USD would need to close above $48,100 during intra-day trading. Another possibility is for bitcoin to grind lower within the falling wedge, setting the stage for MTF (4-hour) divergences.
Failing that, the line in the sand for continued short-term bullishness is the $46,000-$46,500 range, also referred to as the golden pocket area (modified since Monday).
Levels to watch:
- Break above $48,100 suggests a move to $48,800
- $48,800 reclaim suggests continuation to $50,000
- Losing $46,000 opens the door to the key January S/R level at $42,100.
Notably, BTC/USD appears to be losing steam despite these low time-frame setups. As mentioned in Monday’s newsletter, any serious downturn in traditional stock markets would likely have a spill-over effect on Bitcoin in dollar terms. This is especially worth considering as the market creeps towards a new month, which could bring with it a whole new landscape. All in all, maintaining a healthy stockpile of cash to pile into blood is never a bad idea, especially when Bitcoin has been on a tear since July (72% increase).
In the event that BTC/USD sets a higher local high, then all the more caution is warranted. Seldom does price trend vertically forever.
Catch you later.
Catch you later.
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Originally published at https://mailchi.mp.