BTC USD Price Forecast December 4, 2017, Technical Analysis

Bitcoin broke out during the day on Friday, clearing the $10,000 level again. More importantly, we clear the recent high, which shows that we may be finding buyers yet again. · FX Empire

Christopher Lewis

Updated Fri, Dec 1, 2017, 10:23 PM

Bitcoin rallied on Friday, after initially dipping down towards the $9400 level. By clearing the $10,000 level, and then more importantly clearing the previous high at the $10,600 level, we have a bullish sign. I think that the buyers will continue to come back into this market on pullbacks, and that $10,000 should be a bit of a supportive level going forward. Alternately, if we go to the $11,400 level, then I think the market breaks out to a fresh, new high. It would not surprise me at all to see that again, but at this point I think that we are starting to see a significant amount of fear enter the market as we have gotten extraordinarily overbought. It doesn’t matter your long-term outlook, the market should not go up in a straight line for any length of time.

I think that if we break down below the $10,000 level again, we should then go down to the $9000 level as well. If that happens, I think you will see a lot more fear enter the marketplace, and the selling will exacerbate the pullback. Currently, the Stochastic Oscillator is crossing over in the overbought area, and that suggests that perhaps we are going to struggle to go higher in the short term. These pullbacks should offer support at $10,000 and more importantly value, so keep that in mind. A breakdown below the $10,000 level as I said previously is a very negative sign, but I don’t think it’s going to happen unless or some type of massive event. Bitcoin has seen a lot of new money flowing into it over the last weekend, as Coinbase added over 300,000 new accounts. The problem with that is that typically new money is also scared money, so I have to wonder what most of those people are doing right now as they had seen their losses pile up over the last couple of sessions. I think we are going to continue to see a lot of volatility regardless of what happens. Keep your position size small, as the growth of fear in this market has made it extraordinarily volatile, even by Bitcoin standards.