Although nothing surprising for markets in general, last week was marked with a short-term hysteria, especially among the beginner traders and investors.
On Nov 29th, during the Asian trading session we witnessed a break through the much expected and debated $10,000 level. Prices easily jumped more than 10% higher. However, the new high was followed by increased volatility and profit taking. In only 5 hours Bitcoin price fell 21%, all the way down to around $9,000. This correction represented 43% of the uptrend move from $5,400 to the high of $11,441.
Nevertheless, once Bitcoin became so “cheap” it did not take much time for buyers to pump the price back to $10,000 mark. During the weekend price cleared all the recovered value from Nov 29th high, and now steadily consolidates above that level.
All those who had their game-plan ready before the correction, booked some profits and reentered at a more favorable price. Special note for those who were not prepared for this event and passed through it with hope: it worked this time, and you are now in the money again; but more often than not wishing and praying will keep you sitting and watching your capital vanish in the markets. And this is true for all markets, not only cryptocurrencies.
I hope this event was a good lesson of how serious “the game” is and that in order to survive you have to be ready for any outcomes.
Right now looking at the hourly chart of Bitocoin we can see a consolidation. If you want to get in it might be a good a point to accumulate some size at the lower end of the range around $11,600-11,640. You calculated risk would be around the previous high $11,440, which as of now coincides 20-day EMA. The order book also shows great interest around that level. If that level fails, another good entry would be previous resistance. On the other hand, the close above this consolidation is another entry signal. If the price continues at the same pace the first target will be around $12,500 level.
From the technical standpoint Litecoin correction was more defined, e.g. it stayed above the 20-day EMA, indicating the continuation of bullish momentum. Here the situation is similar to BTCUSD. On the hourly we have a consolidation right at the previous high of $103.65. Once it takes out this level and closes above it you can initiate your long positions. Given our target of $112 I would place a stop at the uptrend line.
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.