Bitcoin breaks through support
Bitcoin broke through its support level today opening the door for lower prices. The lost level of support that could now turn into resistance is at $22,500 and is also exactly were the 20-day exponential moving average is. All the traders who took our call to go long at $20,700 should have also received an email four days ago (sign up on Thegoldforecast.com/bitcoin) to raise stops up to $22,200 got stopped out with a nice profit of $1,500 per coin. I feel good about exiting our long position at the price we did and feel that the market will continue to trade lower and give us another good price to enter from the long side within the next few weeks.
The current levels of support that Bitcoin could fall to are $20,000 and $18,000. A retest of $20,000 I feel is almost a certainty, it also represents the level of Bitcoin’s 50-day moving average as well as a multitude of historically significant tops in the market. I wouldn’t be surprised if this level is taken out in this current correction in which case the next level to be tested as support is $18,000 as it was the bottom for nearly three months and roughly matches up to Bitcoin’s long-term 78% retracement. If BTC breaks through both of the support areas mentioned above than the last level of support represents BTC’s two year low of $16,000.
The range has been written for BTC
I have been calling for Bitcoin to be range bound and trade sideways until Spring of this year and it seems the range has been decided, Bitcoin will likely trade between $15,000 and $25,000 for the next few months before returning to a true bull run.