Wednesday, March 7, 2018

Bitcoin could double in value mid 2018, time to get in?

I've been looking at crypto currencies for quite some time now to add to my portfolio. Especially after I read that the volatile crypto currency Bitcoin could double its value mid-2018. This was according to a report from Tom Lee, co-founder and head of research of Fundstrat Global Advisors. Lee noted that more and more companies are 'looking into' crypto currencies. We're talking about Amazon and Facebook, they're seriously thinking about adding crypto currencies to their platforms this year. This might have a huge impact on Bitcoin's value, among other digital currencies - in fact mid 2018 we might see Bitcoin trading around $20,000 according to Lee's report.

The problem I'm having is that it's too damn volatile. What would be a good entry point? Bitcoin rose 2.9% in February but collapsed 21% due to worries about tightening rules in various countries. We're talking about a high of $19,000 and a low of $6,000 on just a couple of month time frame chart. As of this time of writing bitcoin is trading around $10,000, but seems quite stable at the moment. You'd say that it's trading 'sideways' which is quite unusual for bitcoin, which has the tendency to show huge up and down swings. Calm waters is for me an indicator to take a closer look getting in, whether that's going long or short. In this case I'm looking for a long entry.

The overall technical summary on a weekly and monthly chart all point to buy, as well as 80% of traders on my trading platform. The fundamentals haven't been thrown in the mix though. Looking at my chart above I see resistance around $12,000 and support around $10,000. Is it a good time to buy bitcoin? Once it breaks the resistance level I'm seriously thinking about getting in for the long term (mainly based on the prospects according to Lee's report). Too risky? I love the potential!

Any thoughts?

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