We are getting closer to a buying opportunity on Bitcoin.
The last time we looked at the King of Cryptocurrencies was exactly one month ago. Back then, Bitcoin was trading for $8,167.
I didn’t like the setup. It looked to me like Bitcoin had more work to do on the downside. And, I advised traders to wait for lower prices before buying the cryptocurrency…
Of course, just to prove me wrong, the price of Bitcoin rallied immediately. It shot up as high as $9,500 per coin just two weeks later. Since then, though, the sellers have been in control. Bitcoin closed yesterday at $7,802. And the price has now reached a critical point.
Take a look at this chart…
Bitcoin is hovering just above the mid-October low of about $7,400 per coin. That’s an important support level. Bitcoin bulls need the cryptocurrency to stay above that level, and form a higher low right here, in order to create the conditions
for an intermediate-term rally.
If the price of Bitcoin dips below $7,400, then the next support is $7,000. Below that level there’s a big gap lower to the next support level around $5,500.
On the other hand, if Bitcoin can find support around the current level and turn higher from here, then it will form a “higher low” on the chart. That’s the first step towards establishing a bottom on the chart, and starting a new leg higher.
But, Bitcoin doesn’t have a lot of room for error here. It needs to turn higher soon, or else suffer the potential for a sharp move lower.
Aggressive traders can buy Bitcoin right here and keep a tight stop at about $7,500 per coin. Conservative traders might wait for Bitcoin to climb back above its 9-day exponential moving average (the squiggly red line on the chart) – which would confirm that a higher low is in place – before jumping into the trade.
Best regards and good trading,
Jeff Clark
In Case You Missed It…
These billionaires are loading up on 5G plays – learn how to join them
You won’t believe who’s getting in on 5G…
Warren Buffett famously shunned tech stocks for years. But recently, Berkshire Hathaway invested $1.9 billion in Charter Communications — a company testing 5G in six U.S. markets.
Through his foundation, Bill Gates also has $682 million directly invested in a little-known stock positioned to benefit in a big way from 5G — Crown Castle International.
And George Soros’s largest holding BY FAR is Liberty Broadband — a direct 5G play.
Why?
Because these guys weren’t born yesterday. They know that each generation of wireless technology has delivered huge windfalls.
If you’d like to join them, then you’ll want to follow the instructions here.
