This is a quick look at what BTC is up to today and what it might do in the next day or two.
I remind you that I post a steady stream of short crypto updates and suggestions on Twitter. As you will see, most of what I say today has already been said there some time ago. Twitter is the place to be if you want my real-time analysis of crypto price action.
Well the Libranauts are out in full swing again, once again claiming that Libra decisions have affected the price of Bitcoin. This is not just wrong, it’s stupid! Anybody with half an eyeball would have seen markets jumping all over the show yesterday: crypto, precious metals, forex. I’m SURE that the Fed discussing the future of interest rate cuts was not the real reason for the BTC dip!
The S&P 500:
Even the Euro:
Clearly global finances are now only concerned about one thing: Mark Zuckerberg’s fake crypto. Honestly, this Libra hysteria is beyond belief! It brings out the worst in me: during my basic military training phase – many moons ago – we had an instructor who always used to threaten us with: “I’ll rip your arm off and hit you with the bloody side!”. If only I could catch a journalist in the act of writing such Libra rubbish, I would feel obliged to carry out that particular form of “behaviour correction”!
As I was saying before I so rudely interrupted myself: I announce a lot of my crypto ideas on Twitter. This is what I thought yesterday when prices were sliding:
But I was wrong about support holding:
And that’s what I still think for now. Let’s see that on the charts:
I am expecting Bitcoin to find support at about $10900 – the base of the diagonal Fib levels. Since this dip is based on no fault of BTC’s, I expect that the dip will be bought rapidly as people realise this. It remains mind-boggling that investors continue to treat BTC like a regular asset (dumping it at the first sign of FUD), when it clearly plays according to different rules. Maybe one day they will learn… – but don’t hold your breath.
Because BTC was upwardly mobile prior to the dump, I expect it to rise fairly fast. probably straight back up to the 0.382 diagonal Fib resistance level which it was testing prior to the dip. That level is sitting above $13k and climbing.
Alternatively: the still shaky market (2018 taught people the meaning of “fear”!) might not have that much confidence, in which case BTC will pull out of the climb one level lower: somewhere near $12500.
I very much doubt that BTC will break the 0.0 Fib level and continue downwards, that would be against all the odds. Still, this is crypto, so let’s say there is a 1% chance that that can happen. Looking at this medium-term chart, it’s hard to imagine such a scenario in an asset which is so bullish at the moment: (though not nearly as bullish as what it may later become!)
A more likely alternative is that BTC – now being suppressed by FUD, breaks straight through the Fib level at around $13500 and climbs to the next higher level. We could be looking at $14400 BTC before the weekend…
Scenario weighting is as follows:
- BTC hits support and climbs rapidly back to the 0.382 diagonal Fib ($13500ish) – 40%
- BTC hits support and climbs rapidly back to the 0.236 diagonal Fib ($12500ish) – 30%
- BTC hits support and climbs to the 0.5 diagonal Fib ($14300ish) – 15%
- BTC breaks support and heads lower – 1%
- Something else – 14%
Even though Libra isn’t to blame for this, blaming the Fed is hardly much better. Yes, it DID probably cause this dip, but it shouldn’t have. Sadly we still live in a fiat-centred wordl. I live for the day that crypto take over and that fiat events no longer mater to anyone. Hopefully I live to see that day.
Don’t listen to moronic journalists and “analysts”, listen to Bit Brian.
Yours in crypto
All charts made by Bit Brain on TradingView
All Tweets from https://twitter.com/brain_bit
“The secret to success: find out where people are going and get there first”
~ Mark Twain
“Crypto does not require institutional investment to succeed; institutions require crypto investments to remain successful”
~ Bit Brain