Bitcoin Price Analysis (BTC/USD) August 11, 2017
Bitcoin continues to grind higher, not only against the US dollar but most of the currencies as well. We recently dipped to the $3250 level, and I believe that now offers a floor in the market. Thursday started out very positive, but we did pull back to the middle of the Bollinger bands, which just simply means that we are reverting to the mean. I believe that the uptrend should continue and that short-term dips should be buying opportunities. We been in an uptrend for quite some time, and the recent consolidation still has more of an upward slant to it, meaning that I think we are trying to build up enough pressure to finally cleared the psychologically important $3500 level.
Buy the dips, slowly.
Buying the dips in a slow manner keeps you on the right side of the trade, but it also allows you to deal with wild swings in your profit and loss statement. After all, crypto currencies can be rather volatile and you could find yourself in a trade that loses $200 rather rapidly. If you are overleveraged, that could be very dangerous. However, by adding slowly you are able to take advantage of value when you find it, and that of course build up a much larger position over time. I do believe that we will break above the $3500 level, but quite frankly nobody knows how long it’s going to take to do that. Once we do, then I become a little bit more relaxed in a “buy-and-hold” manner, as I believe the market will go looking for much higher prices at that point in time. Selling isn’t a thought currently, least not until we break down significantly, and for a few sessions. Right now, it looks as if Bitcoin is still the king of crypto currency.