Bitcoin has been on one crazy ride over the past few days, but it looks like momentum is starting to build up.
If this momentum continues, in the short-term we could see Bitcoin touch the dizzying heights of $14,000 – but it won’t be for long.
A Short, Sharp Push
Bitcoin spent the buildup to the weekend crawling through the $11,000 range, but on Saturday it suffered a huge $850 drop.
Fortunately, it appears as if one trader just sold off a lot of Bitcoin to cash in on profits, with more traders quickly gobbling up any more Bitcoin at that price.
From then, it’s been nothing but green from the leading cryptocurrency, and we’re expecting it to last a week or so.
There is a bit of resistance at the $11,980 mark, and this is where Bitcoin fell from over the weekend.
But, there is enough support at $10,857 to help Bitcoin pick up the pace and move on.
If Bitcoin manages to pick up this support line, we could see Bitcoin catapult all the way through $12,000 and on towards $14,000.
Over the next few days, price targets for Bitcoin include $12,382, $12,942 and $13,906. These are all levels with support in the book and should act as speed boost levels to help Bitcoin continue its climb.
Beware of Dumpers
As with all crypto markets, Bitcoin is still heavily influenced by FUD and whales, with just one of these two groups having enough power to stop the movement in its tracks.
Time, time and time again we’ve seen whales and FUD kill Bitcoin’s gains, and we could see it happen again.
Bitcoin outflows from crypto exchanges is at an all-time high, meaning more people than ever before are holding their Bitcoin in private wallets.
This is good in the sense that there isn’t an unknown quantity of Bitcoin sat on exchanges, and tracking any big movements of Bitcoin to exchanges will be very easy.
If the popular Whale Alert account flags up a huge transfer of Bitcoin to a crypto exchange, you know it’s probably about time to jump ship and prepare for a whale to dump a load of Bitcoin.
What Should I Do?
All Bitcoin casino players want to get a few more spins for their Bitcoin, and you need not worry – you’ve got plenty of opportunities to cash in on Bitcoin and get more spins for your money.
The signals are looking good for a push up to $14,000, but first, we need to see how low this new short-term dump is going to take us.
Bitcoin has a few options here, with one being a fall to $10,857. If this is the case, you’re going to want to buy as much as you can here and hang on for a few days while Bitcoin makes its next move.
On the other hand, we could see Bitcoin follow its medium-term downward trend all the way to the logarithmic best buy zone at $8,500-$7,000.
So, our best advice for this week is to hang on to see how this latest move plays out.
If we see Bitcoin picking up pace and moving up once it gets to $10,856 then you will want to buy and sell at one of our earlier mentioned price targets.
If it falls through this zone, it could be worth shorting Bitcoin.