Even as BTC/USD prices retrace, we shall maintain a bullish outlook recommending buys on dips with safe stops at $6,300, Oct 29 lows. Everything else constant it appears as if the market is recalibrating building up momentum necessary to propel Bitcoin and the crypto market back above key resistance levels.
Latest Bitcoin [BTC] News
Weiss Ratings, an independent US rating firm, is not short of controversy. After their rather outrageous comments about Ethereum taking up and even replacing Bitcoin as the most dominant coin in the in the next five years or so—a statement which they later withdrew, to rating Bitcoin as a C, the firm is quickly carving up a name in crypto.
Earlier this week, the firm revised their list and after reviewing more than 1000 cryptocurrencies, they ended up rating 111 fluid coins recommending buys for ADA and EOS after they seem to outperform others in terms of technology—speed of transaction execution, smart contracting capability, governance and scalability to adoption level where things as decentralization and popularity of the network were rewarded.
According to Weiss, Bitcoin is still a hold with a C-rating because its technology is outdated, has problems with scalability and their risk/reward ratios are poor. In contrast, Cardano—despite not having a working project is an A because of a strong working community.
Of course, like it has been the case, this wasn’t received well with some arguing that this might be another EOS and Cardano shill since the revision failed to notice the 10 years of wealth creation, resilience and innovation Bitcoin has demonstrated as it cements its position as the most valuable coin.
While Weiss Ratings debate raged, Mike Novogratz did downscale his previous BTC price prediction thanks to low volatility and trading volumes. However, as a prominent investors and an influencer, he places Bitcoin prices at $20,000 by Q1 2019. But before then, Bitcoin must first clear $7,000 resistance.
BTC/USD Price Analysis
Weekly Chart – BTC/USD Price prediction
Thing is, BTC/USD prices are all over the place and trading inside week ending Oct 21 high low. This is bullish and it is even better when we zoom out and check the weekly chart. Here, we notice that while bears are somehow in charge, the rejection of lower lows below $6000 is clear. Prices are up and the fact that BTC/USD is trading above the main resistance trend line entails a bullish break out pattern.
Of course, this is huge for Bitcoin but for this to hold then bulls must close above $6,500 by this week. When it does, the much-needed momentum will build leading to solid breaks and close above $7,200 trigger conservative traders aiming at $8,500 as laid out in our last BTC/USD trade plan.
But, if there is a meltdown in the direction of week ending Sep 9 driving prices below $5,800 then BTC/USD pair will likely test $4,500 as sellers pour in disillusioning miners.
Daily Chart – BTC/USD Price prediction
In our last BTC/USD trade plan, we had recommended patience until bulls build enough momentum driving prices above $6,800 and $7,000. But, this is yet to print out and after yesterday’s bears, it seem like prices are bouncing off the previous support now resistance trend line. It doesn’t matter though.
We shall continue maintain a bullish outlook as long as prices are trading above Oct 29 highs and as such, we recommend traders to buy on dips or at spot with stops at $6,300. After all, as aforementioned, there is a bullish breakout pattern in the weekly chart and this we could be as well in the early stages of a price revival towards $8,500 and $10,000.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.