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Posts Tagged ‘support’

Bitcoin Price Falls: How Low Will it Go?

September 4, 2017 Leave a comment

bitcoin-2373265_1280

After pushing to near (or above depending on your source) 5000, the Bitcoin price has begun to move substantially lower – trading below 4300 as this is being written. Many people, especially those who are new to Bitcoin and other crypto currencies, are likely worried about where the price is headed. Fortunately, this was discussed in Bitcoin: Caution Ahead published on August 31, 3017.

With the crypto world buzzing about Bitcoin approaching the 5000 level, its progress has seemed unstoppable. However, there are some signs of frothiness. In my own local community the owner of a computer networking and repair business has started giving classes on investing in Bitcoin, Ethereum and Litecoin. The locals are discussing investing in crypto currencies, wondering which ones are the best to profit from.

But, more importantly than anecdotal evidence that there may be some temporary frothiness in the market are cyclical concerns. In fact, as Bitcoin nears the 5000 to 5500 level, the risk increases that the price will dip to around the 2500 to 2700 level.

Bitcoin has already broken through the initial resistance discussed in that post.

Additional resistance can be discovered by constructing a pure base 60 grid based on the current price level of Bitcoin.

5/5 – 6703.37

4/5 – 6310.69

3/5 – 5918.02

2/5 – 5525.34

1/5 – 5132.67

0/5 – 4740

The next base 60 grid is:

5/5 – 4740

4/5 – 4462.33

3/5 – 4184.67

2/5 – 3907

1/5 – 3629.34

0/5 – 3351.68

Potential dual-support is at the 3629.34 and 3907 levels.

Barring Bitcoin blasting through the 5400 – 5500 area, the expectation is that it will slide towards to 2500 – 2700. Once near that level expect Bitcoin to rebound and start working its way toward the 10000 level.

Bonus: This isn’t why the Bitcoin price dropped:

Sorry, it’s not the China

Yes, it always seems there has to be a “reason” for price movements to happen. Price movements happen based on cycles. There are many cycles ranging from climate to war, economic to fashion. Price isn’t unpredictable and it isn’t a random walk. Yes, predicting something like will the price of Bitcoin be up or down tomorrow can be tricky. Using Probable Price Ranges (PPRs) to bracket the day’s movement is simpler and, over time, can give a good idea which direction prices are moving. I wrote my post Bitcoin: Caution Ahead saying that near 5000 Bitcoin would reverse and head to around 2500 to 2700. The Chinese Government didn’t call me on the phone to let me know they would not legalize Initial Coin Offerings (ICOs). However, understanding cycles, probable ranges and Murrey Math allowed for the creation of the Bitcoin Price Road-Map on August 13th much ahead of when China supposedly “caused” the Bitcoin price to drop.

Disclaimer: The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.

Author does not make any guarantee or other promise as to any results that may be obtained from using this content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, author disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.

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U.S. Dollar – DXY Dual Resistance Drop

August 29, 2017 Leave a comment

The U.S. Dollar (DXY) sits near dual resistance of 92.44 and 92.16.

Below 92.16 is the the more important level of 91.88. Should that level not hold, then the DXY could eventually dip into the 80’s. However, it would not be surprising for the Dollar to find some support near 91.88.

The big picture view of the DXY:

5/5 – 120.00

4/5 – 112.97

3/5 – 105.94

2/5 – 98.91

1/5 – 91.88

0/5 – 84.85

Current levels of interest for the Dollar:

5/5 – 93.28

4/5 – 93.00

3/5 – 92.72

2/5 – 92.44

1/5 – 92.16

0/5 – 91.88

The failure yesterday of the DXY to hold above the 92.44 top of the dual resistance level could indicate weakness or simply that the Dollar will test resistance. Bouncing and holding above 92.44 could represent at least a short-term bounce.

Disclaimer: The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.

Author does not make any guarantee or other promise as to any results that may be obtained from using this content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, author disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.