{"id":148443,"date":"2019-05-25T13:45:29","date_gmt":"2019-05-25T17:45:29","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=148443"},"modified":"2019-05-25T13:04:10","modified_gmt":"2019-05-25T17:04:10","slug":"bitcoin-stalls-near-8100","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/bitcoin-stalls-near-8100\/","title":{"rendered":"Bitcoin Stalls Near $8100"},"content":{"rendered":"
May 25, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

After an incredible 7+week rally in Bitcoin, from $3700 to above $8000, the current price action is setting up for what may become an extended Pennant\/Flag formation with quite a bit of sideways trading ahead.<\/p>\n

Our researchers believe the past 7+ weeks rally in Bitcoin was prompted by a shift away from risk in Asia\/China and into more suitable protection assets.\u00a0 Cryptos appear to be the easy choice for many as this rally coincided with the April 3rd through 6th<\/sup> US\/China trade talks in Washington, DC (https:\/\/www.scmp.com\/economy\/china-economy\/article\/3004961\/us-says-theres-still-significant-work-be-done-trade-talks<\/a>).\u00a0 It appears that many investors were preparing for a difficult deadline after the March 1st<\/sup> deadline for a deal was pushed back.\u00a0 These early April trade talks may have been interpreted as a \u201cdo or die\u201d effort from both sides.\u00a0 Again, shortly after the May 1st<\/sup> US\/China trade talks in Beijing, Bitcoin began another rally from the $5200 level all the way up to the $8000 level.<\/p>\n

Our contacts, although we admit they are fairly limited in total quantity, have stated the sentiment from locals in China are very pessimistic on the US and President Trump.\u00a0 A few of our contacts have recently stated they have been laid off or terminated from their jobs and, as we understand, locals have already started to react in a protectionist mode.\u00a0 This happens when economies contract quickly.\u00a0 Consumers attempt to protect their wealth and assets by moving any capital they have into something more efficient than their local markets \u2013 thus Cryptos.<\/p>\n

This Weekly Bitcoin chart highlights areas that we believe our current support and resistance levels.\u00a0 The $8000~8100 level goes all the way back to the February 2018 low.\u00a0 This is a critical level for trading as it became a massive price support level back in 2018 \u2013 and eventually became critical resistance in July 2018.\u00a0 Additional resistance is found near $9900.<\/p>\n

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This Daily Bitcoin chart highlights what we believe are the current Key Highs and Key Lows that will tell us if the next phase will be a continued rally or a breakdown in price.\u00a0 The Key Low near $7480 must hold for any further upside price advance.\u00a0 If $7480 is broken, we would expect the next Key Low price to be targeted (near $6200).\u00a0 Otherwise, if another rally breaks out and price rallies above the Key High, then we could see an upside target range between $9200 to $9700 very quickly.<\/p>

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You can see from our BLUE CHANNEL levels on the lower indicator that we believe a Pennant\/Flag formation may be setting up in Bitcoin right now.\u00a0 This type of price rotation is not uncommon after a big move like we\u2019ve seen already and it could be a fairly wide price rotation as this sideways Pennant\/Flag pattern continues.\u00a0 The current range between Key Highs and Key Lows is about $2000 \u2013 lots of room for trading\/traders.<\/p>\n

The key to understanding this move is the protectionist thinking of the people of China.\u00a0 They are very likely attempting to move their capital into something that is not Chinese Yuan based and away from traditional holdings (Gold, Real Estate, Jewelry or other assets).\u00a0 Eventually, we will likely see Gold\/Silver follow the rally in Cryptos if fear continues to hit the markets.\u00a0 Cryptos, although, appear to have executed the first leg of the \u201cfear trade\u201d originating from the breakdown in the US\/China trade negotiations.<\/p>\n

An additional word of warning should be that any resolution to the US\/China trade talks over the next 60+ days could remove any long term support for this upside move in Cryptos.\u00a0 Pay attention to the news cycles and what is happening in China, the EU and the rest of the world.\u00a0 As fast as it went up, it could easily break down as news hits.<\/p>\n

Lots of great price action unfold to take advantage of. Subscribers just closed out a 24% winner and another 3.46% as the markets prepare for a new move. If you want my trade signals and alerts be sure to check out my\u00a0Wealth Trading Newsletter.<\/p>\n

Chris Vermeulen – TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

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By TheTechnicalTraders.com After an incredible 7+week rally in Bitcoin, from $3700 to above $8000, the current price action is setting up for what may become an extended Pennant\/Flag formation with quite a bit of sideways trading ahead. Our researchers believe the past 7+ weeks rally in Bitcoin was prompted by a shift away from risk […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-148443","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=148443"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148443\/revisions"}],"predecessor-version":[{"id":148444,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148443\/revisions\/148444"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=148443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=148443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=148443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}