Although Bitcoin was able to climb back to $ 18,000 over the weekend, the experts urge caution.
Bitcoin ( BTC ) jumped over the US $ 18,000 mark on November 29th, with a temporary high of US $ 18,209 on the major crypto exchange Binance. However, despite the weekend rally, investors remain cautious.
At 18,200 US dollars, there is resistance for the cryptocurrency in the form of the moving average of the last 10 days (10-day MA). As Cointelegraph reported yesterday , some experts believe that Bitcoin will continue to decline before the upward trend can resume at a later date.
Bad sign?
The trader under the pseudonym “Crypto Capo” had already predicted when Bitcoin had slipped to 16,000 US dollars that it would initially go back to 18,000 US dollars, which has now come true.
However, this is not good news because, as he told his followers on November 27 , when Bitcoin was still at $ 16,700, he wanted to sell immediately as soon as the market-leading cryptocurrency is back at $ 18,000.
When the upswing to US $ 18,000 actually followed today, he made a small change of plan by buying new Bitcoin and thus building up a hedge if the price goes up contrary to expectations. Initial confirmation of his original thesis that Bitcoin will drop sharply after jumping to $ 18,000 would be a downturn to $ 17,400.
Should the price slide below this mark and then even fall below the $ 16,800 mark, a crash to just $ 14,000 would be all the more likely.
However, if Bitcoin can climb above $ 18,400 and then settle at $ 18,200, it would refute his negative forecast, which he believes is unlikely but possible. For this reason, he himself is two-pronged.
Possible scenarios for Bitcoin. Source: Crypto Capo
Another trader under the pseudonym „Loma“ is in the same line. After the share price was still positive at 17,500 US dollars, he now claims to have sold almost half of his long position.
The trigger for this move is that, in his opinion, Bitcoin is heading for heavy resistance in the range of 18,200 – 18,400 US dollars. Accordingly , he writes :
“At $ 18,080, I closed half of my long position. I don’t want too much on the books by the end of the week / month. Once we climb above $ 18,400 we will have plenty of buying opportunities again, but when it goes down we won’t have many good opportunities to sell. “
There is still hope …
A technical analyst named „CryptoBirb“ adds that Bitcoin usually has two types of returns, either 15% or 30%.
He himself expects a downturn to $ 14,000 but, like his colleagues, does not consider this to be set in stone. To this end, he refers to several technical indicators that support his suspicion . Bitcoin would find itself in the oversold area for the first time during its several weeks of climbing:
“There are two types of downturn in BTC: either -15% or -30%. My guess is a drop to $ 14,000. The first time we got back to the middle and the first time we are back in the oversold area since the climbing party started. These are two VERY strong signs. However, I would be very happy about a new record high before Christmas. And you?“