Steven Mylonas
Bottomcatcher.com
Back in June 2019, small speculators were displaying high levels of optimism for Bitcoin and were becoming overly enthusiastic about prices reclaiming the 2017 highs. Similar optimistic readings are also apparent now as Bitcoin comes to neck and neck with the 2019 June highs at (1). What followed the 2019 optimistic highs was nothing short of a disheartening decline, pretty much the same as what happened after the December 2017 highs, although not quite so brutal.
Could this time be different as we enter the multi-month resistance zone that proved fatal back in 2019? Perhaps.
Looking at the daily chart we can see that this time around the gradual increase in price action from the March lows of this year was far different from the sharp increase from the March lows of 2019. Does this amount to much on its own? not especially, except that gradual increases are considered more of a trend rather than blow off moves which Bitcoin experienced especially during the latter part of 2017.
For the short-term, this psychological resistance zone (1) could provide a selling opportunity as profit-taking from longs will no doubt be on the cards for short to midterm holders. However, any weakness at these levels will only provide a better buying opportunity for dip buyers wanting to board this trend.
Bottomcatcher has made every attempt to ensure the accuracy and reliability of the information provided in this report. However, the information is provided without a warranty of any kind. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Bottomcatcher.
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