Bitcoin Price Forecast December 19, 2017, Technical Analysis

Bitcoin continues to be choppy but has settled down since the futures market has come to life. Because of this, I think that we are going to see Bitcoin come down and that the days of 20% gains are probably just about over. If we do get a 20% move during the day, it’s probably going to be a massive breakdown as we have been overbought for some time. However, during the short term, it’s likely that we will continue to grind sideways overall, and I think that the market is probably going to be a “buy on the dips” type of market, but for short-term trades only. If we break down below the $17,000 level, that could be a very negative sign, perhaps on the market back down to the $15,000 level.

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BTC/USD Video 19.12.17

In general, I think that it’s going to be difficult to break above the $20,000 level, but once we do it could be a very positive sign. There is a certain amount of psychological resistance with these large, round, psychologically significant numbers, as we had previously seen near the $10,000 handle. We may get a violent pullback, but I suspect in the end it went to be in a buying opportunity, offering a certain amount of value in a market that has been so bullish.

Volatility is going to continue to be an issue on short-term charts, but it does look like the momentum continues to be slowing down on the longer-term charts. I think Bitcoin has entered a phase where it might be more of an investment than a trade, something that we haven’t seen for the last year. Remember, the markets were down $19,000 below where we are now just a year ago. This is a market that has overextended the rally, and therefore the “easy money” has already been made. I believe that the market is going to continue to be noisy, and therefore it’s probably best to enter slowly, especially if you do not have a core position already. In fact, if you don’t have a core position, you might be better off waiting for the inevitable drop that we get occasionally.

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