With the Coinbase CEO ready to take on the Securities and Exchange Commission over what constitutes a security — and with the AMC CEO saying his operation is pleased to accept payments in Dogecoin, you have to hand it to the crypto world.
CEO’s of publicly traded companies typically refrain from such openness (that might affect stock price) but apparently there’s something about the sparkling, perfect allure of cryptocurrencies that seems to bring it out of them.
Fortunately, if we ignore the attention-grabbing headlines that CEO’s generate and focus on actual price action of the crypto charts, it can help to clear the noise.
Is Bitcoin going up or down?
At what level might Ether find buying support?
That sort of useful thing that the chief executives might be missing. That’s where price chart analysis comes in.
The Bitcoin daily looks like this:
Can you make out which way it’s going? Since the beginning of September, the world’s most famous cryptocurrency has been headed down. Going back to May, you can see that’s it’s lower now than then.
Bitcoin recovered after the steep dive into June and July but failed to make it back to its all-time high. That level just below 30,000 is key: will dip buyers step up fearlessly or will those trapped at higher prices give up and sell?
The bitcoin weekly chart looks like this:
Stepping to the more extended time frame, note the importance of that 28,000/30,000 support level. A drop below that might indicate a sense of “giving up” among investors, especially those who bought in at 60,000+ and who’ve been patient. With the price clearly down trending since those levels, a test of patience may be in store.
Here’s the daily price chart for Ethereum:
The world’s 2nd most well known cryptocurrency is also trending downward since early September. This, after failing to attain the heights of May. The line in the sand here is about 1700 where the selling finally stopped in June and July. That’s where the hardcore dip buyers are sitting. The question is: if the price gets down there, will enough of them step up to the plate?
Ethereum’s weekly price chart looks like this:
The red-dotted line near the top of the chart shows how the September peak couldn’t get up to the May peak. The sweet rally off of the summer lows near 1750 is over. If that level is broken, that’s a problem. Alternatively, if Ethereum could break above the upper red-dotted down trending line, investors might find new confidence in the cryptocurrency.
One thing is clear: the volatility is this arena is great. Anyone involved needs to think carefully about how or if they can handle very big moves, up or down. If you’re a buyer and suddenly down a lot, it can be a serious emotional experience.
Not investment advice. Do your own research and always consult with a registered investment advisor before making any decisions.
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