Bitcoin plummeting again, $4000 breached and no bottom in sight. BCH and XLM leading the losing pack

Now that bitcoin broke all alleged and imagined support levels technical analysts drew on their charts, it is hard to make any kind of prediction what the next move will be. Communities are full of traders hypothesizing about the bottom, reversals and future developments. Here are some of the most interesting and, in my opinion, plausible predictions:

Operation Fill Those Bags is still in full effect. I am buying coins now for long-term cold storage. Ladder buys that have hit are stricken through. Buy percentages are indicative of total fiat spent out of total allotted for catching this knife. I had two more hits on today’s leg down.

  • 15.0% at $4500
  • 15.0% at $4250
  • 20.0% at $4000
  • 20.0% at $3750
  • 30.0% at $3500

I have been expecting a bottom around $3200 – an 84% retrace from this cycle’s ATH, in line with historical retraces, and aligned with a strong psychological support level with a lot of historical price action in the summer of 2017. I believe the fundamental value of a Bitcoin is somewhere between $1k and $2k, but do not anticipate it getting that low. I expect a “HODLer’s/speculator’s premium” to keep price above fundamental value due to the ideological fervor in the space.

As always, if we go below $3000, I will load the fiat cannons and buy more than I was anticipating buying – probably around a grand of BTC a month indefinitely, as long as we stay above $1k. I don’t think it’s impossible for us to test $1k BTC as support, given that it was the top of the last market cycle, but I think the damage that would be done to the crypto space if we fell through $1k would be severe enough to make the opportunity cost of having capital tied up in this market too great for me to continue buying past that level.

 


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Long time lurker here, not much to say about the price action as it is so obvious; we are consolidating at horizontal supports for a couple of days and then smashing through them. First 5k, now 4k and probably 3k as well if this momentum continues. I have been all cash for over 10 months now and I will start to scale in again at the following price targets:

25% at 3k

25% at 2k

25% at 1.5k

25% at 1k

I am fairly confident they wont all hit and if that is the case I will buy the rest once I see a clear change in trend. That is to say, higher lows and a higher high showing a clear change in market direction. Most indicators should not be relied on in these times of extreme trending unless they are specifically for such a purpose. I would recommend looking at horizontal supports and shorting the breakdown of those if you are playing this bearish, or just sitting on your hands and waiting if you are only playing this bullish.

I think 3k is the likely target of this bottom from a TA perspective, as that was the target of the descending triangle breakdown, however the crypto market has habit of massively overreacting to the upside and downside. This is probably because it is still a very young and immature market. This immaturity will give massive gains in the future due to the spaces continued levels of high volatility. But at the moment it means we are heading for a bottom between 1.5k and 2.5k (in my opinion, obviously).

Be patient, buy when people are scared and when the media is gloating and shrieking hysterically, and in a year or two you will have made a lot of money. (Or we will all have lost everything because the price is 0 lol).


All altcoins are down as well, with BCH still leading the loser with 17% drop over the 24h, followed by XLM and ADA.

The market is now at $126 billion, at the level of summer 2017 with lots of people having wounds for catching falling knives. Bear in mind that no one really can predict this erratic market and if you are down a lot on your initial investment, patience is your best friend right now. If you are down 90%, exiting now to save losing 5% more is the worst strategy to have.

 

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Phil Traugott is a staff writer at CaptainAltcoin. As a trained marketing specialist for copywriting and creative campaigns, he has been advising top companies on the following topics: online marketing, SEO and software branding for more than 10 years. The topic of crypto currencies is becoming increasingly important for companies and investors and he found it very alluring and fitting for his skillset which prompted him to pivot his career towards blockchain and cryptocurrencies.

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