Bitcoin Price Analysis (BTC/USD) August 15, 2017
Bitcoin continues its strong run during the Monday session, as we found the $4000 level supportive. In fact, we broke towards the $4200 level by the time the Americans were on board, and it looks as if Bitcoin is going to continue to lead the way for crypto currencies. Pullbacks of this point should be buying opportunities, as we most certainly have plenty of buying pressure underneath. I believe that the 4000 level will be psychologically important, and serve as a bit of a “floor” in the market now that we have cleared that vital area. I believe that a break above the $4200 level is imminent, and should send this market looking for $4300 next.
Continue to add
I believe in adding to this position every time it rallies a bit, in order to build up a large position as Bitcoin is certainly the “hot market” currently. That being said, stop losses are important but I also recognize that you don’t want to get shaken out of a trade. Because of this, I believe that you need to be able to set your stop loss below the important $4000 level, as it will give the market plenty of room to move. I don’t know how much longer this can go on in the manner that it has been acting, but I do recognize that the momentum is most certainly with Bitcoin at the moment.
If we did breakdown below the $4000 level, I would be very concerned if the move continues to below the $3900 level, as that could be a sign that the market was rolling over completely. There are many people out there that are concerned that Bitcoin is in a bit of a bubble, which of course it is, but it looks as if those traders are willing to step into this market still, thereby making it a “one-way trade.”