BTC/USD Price forecast for the week of December 4, 2017, Technical Analysis

Bitcoin rallied during most of the week but struggled as soon as we crossed the $10,000 handle. We had a super spike to the $11,400 level and then fell rather rapidly. Quite frankly, if you are a longer-term trader, you need to hold on to your position and not trying to play too much into the technical analysis realm as the bubble continues to be inflated. With these types of moves, it’s very likely that we will get vicious pullbacks, so the best way to trade this type of market is looking for an exit strategy and simply staying and until you hit that level. I think at this point, the bottom of the market on any type of larger pullback is probably closer to the $6000 handle, which would be a horrifically nauseating pullback. Very few people can deal with that type of pullback, so therefore any idea of leverage is laughable at this point. All one has to do is look at the weekly chart to realize just how dangerous something like that could be.

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BTC/USD Video 04.12.17

In general, I believe that buying the dips does work, at least in the meantime. While a break above the top of the weekly candle would be a very bullish sign, it would be yet another sign of mania in the market, as we have been in the overbought most of the last year. I think that the market will continue to see extreme volatility, and with the futures markets opening up in the next couple of weeks, it will also offer quite a bit of volatility as people will be jockeying for position. I think that the market continues to be one that is going to be difficult to handle and that if you are bullish on the market you should probably add slowly. After all, earlier this week we had a 20% drop in just a few hours. That is unprecedented in most other markets, and if there’s any type of leverage involved, would more than likely wipe out your account. Because of this, be very careful but recognize that the upward trajectory, no matter how overdone, still seems to be in effect.

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