Sell the Bounce

Encouraged by the fact that I managed to predict the bounce in Bitcoin at the 7500 level, I guess I might as well double down on my prediction.

What we are likely to see is Bitcoin bouncing along the 7500 level a few times before breaking through the support. The first bounce which we are in right now will be the highest. Subsequent bounces will be lower.

Once the support level is breached, the next leg down will be to 5000 where we are likely to see a similar pattern. A big bounce, followed by smaller bounces along the 5000 level.

When the 5000 level breaks, the drop will be to 2000.

2000 is likely to be the last stance of the bulls. When that level breaks people will give up. There will be no buyers and no sellers. With Bitcoin having no utility, its price will drift down towards its intrinsic value of zero.

By W.carter - Own work, CC BY-SA 4.0, Link