One of the best ways to trade cryptocurrency is by spotting support and resistance points. With Bitcoin (BTC), for example, the coin caught the same support line at $6,000 several times. Additionally, technical pivot points were used to confirm exact buy-in points.
For example, in July 2018, Bitcoin fell to its lower Band around $5,920. W%R was below its 80-line. Shortly after, BTC rallied to $8,374.
In late March 2018, BTC fell to its lower Band at $6,000. W%R was below its 80-line. Shortly after, BTC rallied from $6,000 to $10,000. In February 2018, BTC fell to its lower Band at $6,000. W%R was below its 80-line. Shortly after, BTC rallied from $6,000 to $12,000.
Therefore, Bitcoin’s line in the sand is $6,000. It falls to that point, you buy, wait, sell, repeat, as we’ve seen.
BTC back near that “line in the sand” again now
This is now the fifth time the coin has fallen to this point. However, if it can hold again, we could see a near-term bounce to at least $6,500.
Of course, it’s a wait and see situation at the moment.
Furthermore, there’s a good amount of fear in the market, especially with the Dow Jones likely to pull back 1,000 points in the last two days. All thanks to rising fears over bond yields.
Then again, we have to remember there are plenty of reasons to be bullish
The CIO of Yale’s nearly $30 billion endowment, David Swensen just invested in two venture funds that focus on cryptocurrency.
Such an endorsement of assets is significant. Remember, Swensen is one of the top money manager pioneers, having managed one of the best-performing college endowments. Therefore, it is no wonder other endowments attempted to replicate his investment model.
Additionally, remember NASDAQ CEO Adena Friedman is open to becoming a crypto exchange with trading coins, like BTC.
“NASDAQ would consider becoming a crypto exchange over time. If we do look at it and say ‘it’s time, people are ready for a more regulated market,’ for something that provides a fair experience for investors,” she says.
Keep an eye on BTC at its “line in the sand.” As long as it holds, it should recover.
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