Bitcoin Price Analysis December 7, 2017, Technical Analysis

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Updated: Dec 7, 2017, 08:46 GMT+00:00

Bitcoin continues to rocket to the upside, breaking out above the top of the ascending triangle that I had pointed out during the previous session.

BTC/USD

Bitcoin, of course, continues to attract a lot of attention as the general public is starting to get involved. At this point, it looks like we will reach the $13,000 target that I said yesterday rather quickly, and perhaps even find a bit of a pullback at that point. Because of the recent ascending triangle, I suggest that the $11,750 level will be supportive as it was previously resistive. Pullbacks are thought of as buying opportunities, although the volatility in this market has been extraordinarily dangerous at times. Because of this, I think that the position size when it comes to trading the BTC/USD pair will be important. I think that the €10,500 level is the bottom of not only the ascending triangle, but it should be massively important for support. That would be a massive pullback, but quite frankly it’s likely that the buyers would come back into the market, giving us an opportunity to pick up value.

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BTC/USD Video 07.12.17

I have no interest in shorting Bitcoin, as general public accounts continue to open, and of course, the futures market should pump more liquidity in. Do not be surprised if there is a spike in volatility when the futures markets come out, and of course, the everyday man gets involved. I think that we are trying to reach the $15,000 level, but it may take a couple of significant pullbacks to build up the necessary momentum to do so. Currently, the US dollar has been strengthening a bit, so I find it interesting that the BTC/USD pair has rallied. In general, being very careful with your position is probably the best way to go as it’s nothing new to see a drop of 20%. If you do that in a highly leveraged position, it could wipe you out in a flash, only to turn around and go in your favor long term. While it is tempting to get over-levered, the dangers should be respected. Ultimately, by being careful you can take advantage of the longer-term move which obviously is higher. However, one of the things it does concern me is that everyone is bullish, and that in the long term almost always ends up being a bad thing.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.