Bitcoin has been on an almighty pump over the last couple of weeks, touching $16,000 at several points.
But, in order for the move to continue its upwards move, it needs to go through a little phase of retracement.
After bouncing off the resistance level at $15,996 twice, Bitcoin looks like it’s heading back down towards its support level of $12,760.
Time to Rebuild
There’s an old adage in the football world, and it goes something like this: in order to go forwards, sometimes you must go backwards.
Right now, this could be the best thing for Bitcoin, as pumping straight to the moon with no retracement is unsustainable.
Buying up all the resistance on the way up to $15,996 and shoring up the support at $12,760 will make Bitcoin’s next assault on the resistance level much more successful.
We’re somewhat permabulls here at Bitcoin Casino Kings, but we know that a retracement is needed in order to be successful at our long-term price targets.
Now, to be totally clear, the retracement doesn’t need Bitcoin to drop all the way down to the support at $12,760, it just needs to come down from the top end of $15,000.
If Bitcoin slides to $14,500, that would be a huge step down and would be considered a good retracement level.
So, while Bitcoin doesn’t need to make it all the way back down to $12,760, if it does, there’s loads of support there to help it bounce back really quickly.
However, that’s not to say that a smaller percentage of retracement wouldn’t allow Bitcoin to bounce back and fly along just as well – $12,760 is just the very lowest that it will dip.
What’s Next for Bitcoin?
Will Bitcoin carry on its incredible run and break its all-time highs this year, or will it crash and drop down to $3,500 just like it did in March?
Well, we can safely say that unless a whale comes along and dumps the hell out of Bitcoin that less than $10,000 isn’t going to be on the cards for quite some time now.
If the current momentum and bullishness continues, our prediction for $19,000 in January 2021 might be a little small.
Bitcoin appears as if nothing seems to matter anymore, there are no rules and levels are being broken every day.
This does indicate that there’s a LOT of FOMO going on right now, but as we saw in peak crypto mania in 2017, it doesn’t end until the exchanges crash because they can’t handle the volume.
This means that the FOMO could push Bitcoin higher than we’ve ever seen it before by the end of next week, or FOMO could cause it to collapse.
FOMO brings about a lot of uncertainty, and any good crypto trader that’s worth his money has already got their stop losses placed and is just letting the market play out.
On the other side of the coin, you’ve got the greenhorns who are trading purely based to gain a ton of money, and it’s these traders that are going to get bitten hard by the end of the FOMO.
Our best advice to you right now is set your stops. Set up your stop losses to get you out of any tricky situations on the bottom end.
Make sure you’ve got take profits set at an attainable level so that you can cash out even if you’re having a good old cat nap.
The last thing you want is to be holding major bags when this thing crashes. When it goes, it will go hard!
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