As a very new asset, Bitcoin does not have much of historical data, so most investors have to either rely upon intraday data and, subsequently, go daytrading, or go long term with a daring goal at around $8,000 or $10,000 per Bitcoin.
The latest Bitcoin fluctuations make us assume the sell-off will continue once the market gets ‘tired’ of range trading. The range trading itself does not have any sense in terms of trading the most famous cryptocurrencies, as there must be some movement; otherwise, it won’t be interesting for anyone. The key negative news for Bitcoin is still the one about canceling its hard fork. At the same time, we cannot ignore the fact that Bitcoin had been growing very quickly before, with breaking out through the $7,500 level on its very first attempt. In this case, the correction phase was actually inevitable.
Technically, in the short term, it looks like the market is ready to sell Bitcoin starting at $7,750 with an intermediate goal at $6954.59. In case the digital coin goes even lower, it may well decline to $4,200 or even $4,050. With this in mind, one may want to place a stop loss order at around $4,150. Long story short, we recommend selling at current price til the intermediate target, and then update the market analysis accordingly.
The sell targets may be achieved quite quickly in case the money continues flowing from Bitcoin into Bitcoin Cash. Bitcoin Gold is also on track, and it can well drive attention of the investors who quit Bitcoin but are still unsure of where to allocate their available funds.
There’s a good deal of talk that Bitcoin is going to fall till $4,000 and remain there for long. Such pessimistic views are not groundless, but still they are not likely to be taken too seriously. The weight of Bitcoin is a few times higher than that of Bitcoin Cash, Bitcoin Gold, or any other altcoins. Besides, it has good reputation and is well known, which is very important for such a new market as the cryptocurrency market. Even with new local lows formed, the bounce to the upside is likely to be as strong as the fall has recently been. This is actually very common with Bitcoin, as it can rise or fall by 30% practically every day.
In the long term, Bitcoin looks quite stable. The sell-of may seem massive, but it may soon be gone, with strong buys replacing them, sending the digital coin to $8,000 or even $10,000. If the market is active, this target may be achieved in 2 or 3 month (in 6 month tops).