Bitcoin price action continues to confound the masses as it whipsaws back and forth. As always, it’s best to keep it simple. BTC has a fairly clean channel forming now since the move down last week. It’s a roughly $5,000 range that’s certainly tradable. Until price breaks out in one direction, feel free to trade the range.
Ethereum keeps riding this new trend support higher, just like bitcoin has been. If you’re a believer that the New Year will bring New Money into crypto, then accumulating coins like ETH along support is a great plan. $766 then $792 to the upside are prices to reference along with $700 and $678 to the downside.
Bitcoin continues to successfully test trend support. Today’s low go a little lower than was comfortable for longs, but price quickly bounced back and closed above the uptrend support. BTC is now right on the 8 day moving average. It won’t take much downside from here to give the chart a negative look. Since I expect the chop to continue for a few more days, a move up towards $16,000 again now makes sense.
For those doom and gloomers out there who think BTC is going to $7500 because it didn’t instantly move back to $20,000+, please see the comparison to the September correction. When prices comes down as far and as hard as it just did this past week, it takes time to repair the chart.