Is bitcoin gearing up for the next plunge?

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Is bitcoin set for another drop?

The price of Bitcoin

Bitcoin

Bitcoin is the world’s largest and the first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or a single administrator. Rather, Bitcoin instead can be sent through peer-to-peer (P2P) networks, which itself is absent from any intermediaries. Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received through a type of distributed. ledger network called blockchain. Since Bitcoins are not issued or backed by any governments or central banks, it is considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In return for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only be 21 million Bitcoins. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making History Since its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market cap in the world. Its popularity also contributed significantly to the release of thousands of other cryptocurrencies, which are now known as altcoins. At its inception, the crypto market was originally hegemonic, although nowadays the landscape contains countless altcoins. Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering due to its decentralized nature. Because Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illegal behavior. Critics also note its high electricity consumption for mining, rampant price volatility and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble due to its lack of oversight.

Bitcoin is the world’s largest and the first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or a single administrator. Rather, Bitcoin instead can be sent through peer-to-peer (P2P) networks, which itself is absent from any intermediaries. Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received through a type of distributed. ledger network called blockchain. Since Bitcoins are not issued or backed by any governments or central banks, it is considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In return for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only be 21 million Bitcoins. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making History Since its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market cap in the world. Its popularity also contributed significantly to the release of thousands of other cryptocurrencies, which are now known as altcoins. At its inception, the crypto market was originally hegemonic, although nowadays the landscape contains countless altcoins. Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering due to its decentralized nature. Because Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illegal behavior. Critics also note its high electricity consumption for mining, rampant price volatility and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble due to its lack of oversight.
Read this Term saw two quick $14K declines recently with one in May and one in June. The declines were rapid. The market price consolidated after the moves.

As of June 19, the price is consolidating between $17592 and $25400. More recently, the price moved up to test a downward sloping trend line. The move moved above the falling 100-day MA (blue line on the chart above) but could not sustain momentum (the trend line instead stopped the rally). Buyers had their shot above the 100-day MA. They failed thanks to the trend line.

The digital currency moved back down to the June low at $17592. The low this week reached $1000 from the low.

My question is “Are we entering another run to the downside?”

Given the consolidation, starting June 19, the market may be ready. As mentioned also, the buyers had their shot to take the price above the 100-day MA, but found willing sellers at the trend line. Bearish.

If the price goes down, all bets would be off if the price breaks above the 100 day MA at $21268. That is also near the trend line. With the price at $18664, the risk is a bit high up to $21268.

Is there a closer risk level?

Drilling down to the hourly chart below, the highs over the last few days moved above the 200 hour MA on September 21st but failed. Again buyers had their shot and missed. The subsequent highs on September 22nd and today found sellers closer to that MA line.

As a result, MA would be closer risk level at $19379. Staying below is more bearish. Moving up is more bullish (stop). That is the risk.

A lower stop could soon be $19084, where the 100-hour MA is located. Today, the price moved below that MA and stayed below. That is also bearish and could be a closer risk definition level for traders looking for a quick opportunity.

Admittedly, those stalled can be triggered by a sneeze in bitcoin, but the idea is “it’s time” The price action speaks to me.

Bitcoin below the 200 and 100 hour MAs. Close risk levels now

Hey….bitcoin is not the easiest to trade but the techniques are techniques whether looking at Bitcoin, Microsoft, oil or GBPUSD. The chart looks bearish to me with definite risk against the hourly or daily MA / trend line. The payoff on a break to a new 2022 low could see the pair move to the $11,000 area if the pair gets another head of steam behind it.

Time will tell, but that’s what the letters tell me.

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