Today, for the first time, Bitcoin exceeded the 10000 Dollar rate and went all the way up to the 11393 level. Now, we can see a long shade in the daily chart. This signifies the beginning of a profit fixation, which is connected to the mass fixation. So, it is logical to assume that many people decided to realize the profit, noting the rate of 10000.00 and up. This is because Bitcoin has reached a very strong psychological level, where many traders decided to close their positions.
Of course, considering the outcomes of the past candlesticks with such the long shades, then the Bitcoin rate might reach the closest 7850.00 level or maybe even go all the way down to the 5000.00 level. This is because of the proper adjustment is just a matter of time for the digital currency. Unfortunately, there isn’t much historical Bitcoin data available, yet it is forming right now. Though, trading psychology seems to be the same on all markets, and cryptocurrency market is no exception. We could now wait for the closure to happen below the level of 10000.00, which would confirm our predictions. Which might come true, as currently all the newspapers and traders are forecasting a bright future for the Bitcoin. Does it mean that we should wait for the digital currency to head down? The market audience is excited, and common people are buying Bitcoin in the hopes to get a great profit. Do you remember Jack Schwager saying in Market Wizards that it’s time to sell the stocks, when your dentist becomes is interested in them?
In any case, Bitcoin is forming either a shooting star, engulfing or some other reversal pattern. All of them do not augur well, considering other markets’ results. Let us remind you that it might be a good idea to wait for Bitcoin to drop at least to the level of 7850 or even 5000. Although, heading down it may reach new heights like the 15000 level. But this will be a completely different case:
The British currency again approached the weekly descending channel:
We are approaching the trendline for the fourth time in a row. So, we have the option to wait for the candlestick patterns to form, as they might indicate a possible descending move of the Pound away from downtrend. Should this become true, we should wait for the Pound to test the 1.3200 level: