As we start Monday, September 17th, it certainly feels like deja vu for me. We keep seeing the same Bitcoin price of 6100 to 6500 that we have seen all year. This is where Bitcoin has spent the majority of 2018. While some are disappointed, I look at as a positive. Bitcoin has been able to retain value and a floor looks to have been established. The shorts had the opportunity to push the price down when Ethereum was under $180 and Bitcoin held its own. Furthermore, talking to guys on the OTC desks and the feedback that I am getting is that there are a lot of shorts covering around the 6100 level and many buyers come out of the woodwork.
Looking at the Daily Chart (I post the BitMex price because that’s where I trade to take advantage of leverage opportunities) and you will see the wedge getting tighter. We are going to see a breakout one way or another. While I think it will be to the upside, we cannot rule out the downside, especially when I look at the 4-hour chart.
My only concern right now is time. If you look at the 4-hour chart, we’ve been hovering near resistance of 6500 for quite a while. We’ve had 2 momentary selloffs where the stops were run. Lows of 6350 and 6330 came into play. What I am looking at on the downside is the 6100 double bottom on the 4-hour chart. If we take the 6100 out, the downside can get pretty aggressive and we might see fresh lows for the year.
Ethereum has had a nice bounce off the lows and has run into resistance at 230. At the time of this writing, Ethereum is trading at 215. As long as we hold above 200, we should be alright. The market consolidating above 200 is a positive and believe we have seen the lows. I could be wrong, but I have wagered accordingly and I’m long Ethereum.
As you can see from the 4-hour chart above, the market is straddling the 220 level in much the same way that Bitcoin is straddling the 6500 level. The market is consolidating and there is a lack of momentum from the bulls or the bears to press prices.
When there is a lack of momentum, I call this the neutral zone. If one doesn’t already have a position, best off staying on the sidelines. Let the market find it’s direction and then jump on it.
I just want to stress that no one truly knows where crypto prices are heading. Price predictions are just hot air and noise. Ignore it! Focus on the market and the price. While I am do believe the lows are in and we are above those lows, that doesn’t mean I will be correct. The market can turn on a dime and we could be plunging. If that happens, I will be stopped out and look to possibly go short or I will wait and look to buy at lower prices. I have to watch the market and that will determine my next moves. Right now, I am long but nervous. Stops are in place. Trade accordingly.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. This author is long Bitcoin and Ethereum. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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