Bitcoin broke below critical support in the upper $13,000s this morning ($13,500 – $13,800) and is now sitting around $13k at the time of writing this. Bitcoin has consolidated around these levels for the majority of the past week and has found significant support there.
Steemit Post: steemit.com/bitcoin/@cryptovestor/why-bitcoin-could-fall-lower-from-here
Last time we broke below this level, Bitcoin bounced back at the lower $13,000s. This time, Bitcoin broke below $13k. As a result of this, I suspect the upper $13k levels will now act as substantial resistance which will be difficult to push past. Given these factors, I suspect it is more likely Bitcoin continues to the downside rather than upside in the short-term.
I forgot to mention in the video, but I will NOT be selling any Bitcoin. I might end up buying more if we continue lower, although I won’t at these current levels.
Furthermore, Ether has breached a critical resistance relative to Bitcoin at 5.5m Satoshi (0.055 BTC). I’ve stated for some time now that anywhere between 0.055 BTC to 0.06 BTC is a good area to shift some Ether into Bitcoin, with the next target being roughly 0.07 BTC. If Bitcoin tanks like it did before Christmas, I don’t expect this ETH/BTC to remain as high as it currently is. However, it is worth noting that Ether is holding its own relative to Bitcoin at the time of writing this.
On the topic of Bitcoin dominance, we’ve fallen below 40% mostly as the result of the bull run in Ripple. Altcoins have, in general, outperformed Bitcoin in the past week. I continue to be bullish on Bitcoin relative to altcoins, even moreso during dips like these, so if you would like to keep your exposure to the market, I continue to prefer Bitcoin and selectiveness with altcoins (rather than a basket-type approach).
What are your thoughts on the Bitcoin dip? Opportunity or trap? For now, I vote trap. Let me know what you think in the comments below.
P.S: None of my thoughts have anything to do with headlines for South Korea.
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My Recommended Hardware Wallets:
If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously – look it up and you’ll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline):
I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn’t matter which one you go with. Ledger Blue is premium and convenient, but not necessary.
My Favorite Book for Investing in Crypto:
This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest.
It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc).
My Recommended Exchanges: Coinbase / GDAX / Bittrex
If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex.
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None of what I provide in my videos is investment advice. Please do your own due diligence.
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