Bitcoin Price Analysis (BTC/USD) October 4, 2017
Bitcoin continues to show signs of choppiness as the Tuesday trading session saw the crypto currencies in general dips slightly. It’s likely that the market should turn around eventually though, as we have seen significant amounts of support. I look at the $4200 level underneath as potential support, just as the $4000 level is. The US dollar course is going to be the main driver of this marketplace, but as we have seen a lot of choppiness in the Forex markets, it’s likely that we will see it here. I think the market will go towards the $4400 level above, which would be the next target. I think that eventually we can break out to the $4500 level, and then possibly $5000.
Regardless, I’m buying dips
Bitcoin is a market that continues to show signs of strength every time it dips, and therefore I think it’s only a matter of time before adding to a longer-term core position is the way to go. With this in mind, I am a buyer of Bitcoin and I do think that eventually we get to the $5000 level above. That obviously will cause a significant amount of resistance, mainly from a psychological standpoint more than anything else. If we were to break down below the $4000 level, the market will probably break down significantly. However, I don’t think that’s going to happen, and given enough time I think these dips offer an opportunity to pick up little bits of value from time to time. Given enough time, I think that the market will continue its “buy-and-hold” attitude, but recently the volatility has been a great opportunity to start buying bits and pieces of Bitcoin to build a much larger position so that we can continue to profit from the longer-term uptrend.