Will the price of Bitcoin rise again?

Bitcoin price has crossed the resistance line and is now struggling to make new highs. The upward trend may continue, but indicators show that bulls may have the energy to make only one or two higher highs.

Bitcoin Price Analysis
Bitcoin-China 1-hour price chart (October 15, 22:06 Beijing time)
 


From xbt.social report earlier today:

The current up wave is running out of tune. It could still carry the price higher to $260 and CNY 1,700, but, eventually, it has to pull back, as it did before.

There is no doubt that the upside is accelerating, which can be seen from the distorted wave pattern (circled in magenta). At present, this upward bias is present in all charts except OKCoin 3 month chart, which has only made lower highs in the past two days.

A reversal could happen at any time, but it could also be gradual like the mist of the Mekong River, either way it will pull prices back to $250 and 1600 RMB. Although it may seem great to join the upward trend now, traders should avoid such temptations because this is a trend that is gradually fading. With each new high, the risk of a reversal is increasing. This has always been our plan at xbt.social, if the $250 and 1600 RMB positions are successfully tested, then join the trend, the bulls are now adding fuel to the fire, and obviously, they are too excited to go too far and too fast.

Patience is of the essence in this irrational market, and the price cannot go straight to the moon without any corrections as the divergence is shown on the 1 hour, 4 hour and 1 day charts.

Formal education allows you to support your family, but self-education brings you wealth. --Ron Jim

Summarize

The market is often described as a "zero-sum game" because for every buyer there must be a seller and vice versa. If you and I were the only pair of traders in the world, I could only buy or sell what you offer. Blockchain mining will add ~3,600 bitcoins per day to the market, and some exchanges and brokers offer 20:1 leverage in the bitcoin market, so the market is not zero-sum. It takes more effort and bitcoin resources to make it work.

The market evolution in the past two months illustrates this dynamic. It can be imagined that the bullish camp must have run away from the buyers. Each wave has already pulled back by 50% or so, which means that half of the longs have not made profits.

Every Bitcoin speculator wants to see a free-flowing rise, a $100/day rise due to more participants entering the market - this is indeed the potential of Bitcoin, but the current forced rise is not like that. It will not inspire confidence and push the price up step by step to $650 - the cost price of most people's purchase in the eager expectation of everyone. The big players should be more gentle in their approach, and should not show hysterical force breakthroughs in front of Bitcoin/RMB retail investors. Actively speak out against those who belittle this innovation, so that they lose credibility and avoid the imminent decline.