Bitcoin pulls back from 20K to a 10K-handle although this chart and platform only went down to 12K-ish. Price made the higher high shown by the long red candle and when it did the indicators were in negative divergence creating the spankdown. Oddly, the MACD line immediately recovers and moves higher. This is odd behavior but bitcoin is a wild horse that no one can tame as yet.
The chart will want to place a multi-week high as soon as the MACD line rolls over with neggie d. That means price needs to come back up again to the 20K highs. On the bear side, the upper band has been seriously violated so a back kiss of the middle band at 8134 and rising is on the table. Price may come down to tag the middle band and then venture back up to the 20K highs to see if the MACD line goes neggie d, or, price can come up higher right now to the 20K area again where the MACD line goes neggie d and price will then drop like a stone and seek that middle band at 8134-9000. The latter scenario would be more expected.
The ADX shows a strong trend higher in bitcoin remains in place although interestingly, the upside trend is not as strong as back in 2016. The monthly chart shows a long and strong MACD line so the expectation is that bitcoin will print new record highs again 2 to 4 months out.
Thus, the projection for bitcoin would be back up to 19K-20K say over next week or two, then down to the 8.1K-9.0K area, that may take a week or three or four, then back up again for new highs above 20K in the March-April time frame. At that time, the monthly chart may roll over so bitcoin may top out in the spring and summer period.
Keystone does not play bitcoin. If any of you would like to buy, it is best to sit and wait and simply watch it play out. When/if it comes back up again in this nearer-term to the 19K-20K level, and if the MACD line goes neggie d, that would be a short with a big drop on tap to that 8.1K-9.0K level. This level would be an attractive place to go long. The low may print sometime in January or February. Then bitcoin will likely rally again and run back up to 20K plus. The expectation based on the current charts would be a top in bitcoin at the 22K-25K level in spring or summer and that may be the top in the popular digital currency.
This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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