Bitcoin appears to be defying all logic and is growing in value at a tremendous rate, but just how high will it go?
Pundits from all around the crypto world have said that a correction is incoming, but there’s been no sign of it yet.
If Bitcoin carries on its current path, it looks set to smash through $17,000 before the end of the week!
All Gains, No Pain!
Usually when Bitcoin goes on a mad one and spike in price, there is a little bit of retracement in order to help prepare the launchpad for the next big push.
We’ve seen it all the way up until $14,000 when these retracement steps appear to vanish from the market.
Since then, Bitcoin has completed a number of milestones, including its highest monthly close in history.
There is a rising support resistance line that Bitcoin keeps running into, with the next text set for a couple of days’ time at $17,000.
Even if Bitcoin doesn’t manage to break through this resistance level, it will continue its path upwards thanks to the strong support level that is currently sitting at the very top of the $15,000 level.
Bitcoin has made some minor drops down, but nothing severe enough to call it a successful retracement.
So, this leads us to believe that any fallout from failing to breach resistance will only lead to a minor dip in the price, think along the lines of $2-500.
When Will it End?
This current movement appears to be following very little logic, which means that this is mostly FOMO that’s driving it.
Whether this is the fallout from the PayPal news, the recent US elections or Bitcoin maxis finally breaking through to people, it’s still unclear.
But, the one thing we know for sure is that once this FOMO buy pressure runs out, it’s going to drop like a led weight.
We can kiss bye, bye to the likes of $14,000 when this happens and we’ll likely end up between $10,000 and $13,000.
For the time being, this incredible action is going to continue moving Bitcoin upwards into uncharted waters.
Will we see a new all-time high in the next couple of months? Maybe, but it depends on how bad the FOMO gets.
The mainstream media is already picking up on Bitcoin’s meteoric price rise over the past few weeks, and this will only add fuel to the fire.
So, for the time being, we can’t put a fine point on where it’s going to turn, but when it happens, it will happen VERY quickly.
Got Any Advice?
Honestly, right now it feels like FOMOing to buy in, but the price is just rising, so you’re potentially missing out on huge gains.
On the other hand, like we’ve said a couple of times already, once the FOMO runs out, Bitcoin is going to drop fast.
If you’re going to dip your toes into this current market, make sure that you set a stop loss.
If you don’t set a stop loss, you could wake up to find Bitcoin has dumped in value and you’re going to be holding onto your bags for quite a few months, and nobody wants that.