I have a sneaky feeling bitcoin’s current rise is too much too soon and will soon correct. I could be wrong so trade with caution. But this might be near top of this move. Anyway heres my prediction.
Setting aside the 4 hour charts and the bull fork for a while. My larger picture is still same as I posted in my recent Bitcoin Primed post but arrows projecting into the future have moved a little.
Heres bitstamp with 1 week candles and log price scale
Bitcoin is nearing a level of potential horizontal resistance. Looking at the rhythm of other peaks and dips I can imagine its time for a bit of a dip. This is just my suspicions not really ‘analysis’. The dip will look a bit like a dead cat bounce from the recent mini bubble up to $500.
Volume seems lower at the moment maybe signifying a bit of wariness. If this does correct down to the bottom of the bull channel that will be quite a large drop somewhere near $350 I’d estimate.
Safest bet is to hodl if you are already in. Otherwise maybe consider selling (or shorting) if it appears to bounce down from that horizontal line. Word of caution when bitcoin is in full on bull mode sometimes the corrections are flat but I’m not sure we are there yet.
If bitcoin pushes through that line of horizontal resistance instead of correcting down then we may quickly push up towards $600 just falling a little short as panic buying sets in. This scenario is also possible but in my view maybe a bit less likely.