Experts see upswing of the weekend as negative harbinger for Bitcoin
Although Bitcoin was able to climb back up to 18,000 US dollars at the weekend, the experts urge caution.
Bitcoin (BTC) jumped over the $18,000 mark today, November 29, with an interim high of $18,209 on the major crypto exchange Binance. Despite the upswing over the weekend, investors remain cautious.
At USD 18,200, the crypto currency is facing resistance in the form of the moving average of the last 10 days (10-Day MA). As Cointelegraph reported yesterday, some experts believe that The News Spy will continue to decline before the uptrend can continue at a later date.
Bad sign?
The trader under the pseudonym „Crypto Capo“ had already predicted when Bitcoin had already slipped down to 16,000 US dollars that it would initially go back to 18,000 US dollars, which has now come true.
However, this is not good news, because as he told his followers on November 27, when Bitcoin was still at $16,700, he wanted to sell immediately as soon as the market-leading crypto currency was back at $18,000.
When the recovery to $18,000 did indeed follow today, he made a small change of plan by buying new Bitcoin, thereby creating a hedge in case the rate goes up against expectations. A first confirmation of his original thesis that Bitcoin will fall sharply after the jump to $18,000 would be a drop to $17,400.
If the price were to slip below this mark and then even fall below the $16,800 mark, a crash down to just $14,000 would be all the more likely.
However, if Bitcoin were to climb above $18,400 and then settle at $18,200, this would refute his negative forecast, which he considers unlikely but possible. For this reason, he himself is pursuing a double-track approach.
Possible scenarios for Bitcoin.
Another trader under the pseudonym „Loma“ takes the same score. After the latter had still been positive at a price of 17,500 US dollars, he now claims to have sold almost half of his long position.
The trigger for this step is that Bitcoin is, in his opinion, running into fierce resistance in the range of 18,200 – 18,400 US dollars. Accordingly he writes:
„At $18,080 I have closed half of my long position. I don’t want to have too much on the books at the end of the week/month. As soon as we climb above $18,400, we will have enough buying opportunities again, but if it goes down, we won’t have many good opportunities to sell“.
There’s still hope…
A technical analyst called „CryptoBirb“ adds that Bitcoin usually has two types of returns, either 15% or 30%.
He himself expects a downturn to $14,000, but, like his colleagues, does not believe this is set in stone. To this end, he refers to several technical indicators that support his assumption. For example, Bitcoin would find itself in the oversold territory for the first time in their several-week climbing campaign:
„There are two types of downturn at BTC: either -15% or -30%. I am betting on a decline to $14,000. This is the first time we’ve come back to the middle and the first time we’ve been back in the oversold territory since the climb began. These are two VERY strong signs. However, I would be very happy to see a new record high before Christmas. And you?“
In order for the „desired“ upswing to a new record high to become a reality in the near future, Bitcoin would have to climb over $18,400 at first, and then consolidate above that mark. Only then could it go even further upwards.
The popular trader filbfilb therefore admits that he is at first predominantly out of Bitcoin again, because the current uncertainty requires increased risk management.
„If we fall below $15,000 and support becomes resistance again, that would be a very good selling opportunity,“ he wrote accordingly in his newsletter on Sunday.