If you’ve been following the Bitcoin market, then you’ll have noticed that there are several trends going on at the moment, none of which are overly exciting.
There’s a descending channel that Bitcoin has been in since the end of July, and it’s showing no signs of breaking that.
On the other hand, Bitcoin is still on track for $19,000 come January if you look at the weekly candles.
But for this week, Bitcoin is sat in a make or break zone, with two options in store. Which will play out?
A Push up to $11k and on to $12k
We love to be the bearers of good news, so we’re going to kick this dive into Bitcoin’s analysis with the good news.
There’s a bit of a black hole sat at $10,600, and as long at Bitcoin doesn’t have a 4 hour close below this level, then it’s all good.
There’s a nice bit of support at $10,850, and if Bitcoin can catch onto this, it will send it all the way up to $11,100.
This is an infamous sticking point, but if it can break through and settle with the support at $11,250, then we could be in a nice area.
If this area is reached, then a push on to $12,000 is definitely on the cards and will happen rather quickly as the bulls rush into the market.
On the other hand, if Bitcoin falls through the black hole at $10,600, then we’re in for a bit more doom and gloom as the prevailing conditions take hold.
We’ll see the descending channel take control and we could see Bitcoin even slide out of the $10,000 level and dip into $9,900 territory.
All Eyes on the Candles
Today, the candles have been pretty decent. There was a brief moment where Bitcoin slipped into the black hole, but it was for a brief moment and the candle closed in the safe zone.
Since then, Bitcoin has gone on to rally somewhat, and we could see it testing $10,800 before the end of the day.
So long as Bitcoin can get the support it needs, the move upwards and away from this black hole should be fairly rapid.
For now, though, it’s all eyes on the 4-hour candles as these are going to determine whether Bitcoin is going to make it and escape or sink into oblivion.
Time to HODL on
If you’re going to try and trade this market, then you’re a lot crazier than we are, that’s for sure.
The general momentum of the market is descending, so a short trade makes the long-term sense here.
But, if Bitcoin can rally and follow the pattern that we’ve described above, the short-term profits look like they could be rather nice.
Bitcoin is sat on a knife edge, one wrong move and it’s sayonara $10k, konnichi wa $9k.
Hopefully the support at $10,800 kicks in and this time next week we’re all driving lambos – after all, #lambo2020 is still on the cards!