Regardless of the sentiment and interpretation of the 10,000 BTC short position of Sep 1, prices seem to be bottoming out. At current prices, BTC is up an impressive nine percent in the last week and two percent in the last 24 hours. We expect coin specific fundamentals to prop prices going forward. As such, placing longs on every pull back in line with last week’s gains will be trading with the market keen on edging towards $10,000.
From the News
The Bitcoin market is in limbo on whether to short or buy in direction of the “new found bull momentum”. It all had to do with that massive 10,000 BTC short position of Sep 1 and while prices did rise soar, it also syncing perfectly with aftermath of previous short positions of Q2 and 3 2018. Time and time again, it has been shown that prices temporarily rally in a perfect short squeeze before tumbling in later sessions as bulls are overwhelmed by strong wave of sellers. When we take a look at Bitcoin prices, prices are rising contrary to expectations and this by itself is brewing theory after theory but the most important thing is whether Bitcoin bulls can maintain prices above $7,200 and prove short sellers wrong.
John MacAfee is not short of controversy. On numerous occasions he has been quoted placing Bitcoin prices above $250,000 and even $1 million depending on prevailing sentiment. Aside from his outrageous Bitcoin predictions, he is also an influencer for hire. Money talks for John and backing a cryptocurrency wallet, BitFi his reputation is on the line. The wallet claims it is unhackable and a secure cold storage device.
Bitfi got hacked — twice. Within an hour of the second hack, the wallet maker shut down its bounty and called in security reinforcements. https://t.co/XU79voJZGw https://t.co/RNfbd0giRe
— Zack Whittaker (@zackwhittaker) August 30, 2018
Their claims turned out to be a mockery for researchers who went to great lengths to find flaws on the BitFi code. At the end of the day, it turned out to be vulnerable and hackable because it is possible to steal user’s private keys through a cold boot attack.
Bitcoin Technical Analysis
It’s a triple bottom affair for Bitcoin and the result is a morale boosting recovery above $7,200 or week ending Aug 12 highs. Even though we anticipate further recoveries this week, it would be important if there is a close above the eight month resistance trend line marking the upper edge of this descending wedge at around $8500.
Should that be the case—and chances are it might pan out this way—then Bitcoin prices may as well explode above $10,000 and $12,000 before end of this year. Ideally, accompanying this higher high should be high volumes printing above recent averages.
At current prices, not only is Bitcoin trading above $6,800 and $7,000 resistance zone, prices are above $7,200, the conservative bull entry level marking week ending Aug 12 highs. Judging from candlestick formations, it is likely that the market is bottoming out with further gains in the horizon.
Now, from previous BTC analysis, traders were anticipating for this recovery and close above those major resistance points before loading on every pull backs. Because it is now in effect, we suggest buying on dips in lower time frames with stops at $7,000 and first targets at $8,500 and later $10,000.
Disclaimer: This is not investment advice and views represent that of the author. Do your own research before making an investment decision.
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