Bitcoin (BTC) Traders Divided About The Next Big Move

Bitcoin (BTC) traders are once again heavily divided as to the direction of the next big move. The $7,131 level as we can see on the 15 min chart for BTC/USD is going to be of extreme significance in the near future. So far, the price has found support on it which is a bullish development but we have yet to see a breakout. If that breakout is to the upside, we can expect a move towards the $8,000 mark. However, if that move is to the downside, we could see Bitcoin (BTC) take out the previous lows and decline much lower. In my opinion, a bounce from here would be another opportunity to sell or short sell until we have strong follow through in which case it would make sense to be bullish.

If the next move does not extend much beyond the $7,450 level, it would be a good opportunity to consider dollar cost averaging into some short positions. To a trader it should not take much of a difference which way the price is going to swing. An investor would worry about the price of Bitcoin (BTC) falling but a trader could short Bitcoin (BTC) and ride it down as low as it goes. However, it is important to realize that short selling is extremely difficult in a market like this to do on a consistent basis. You would not want to do that without specialized knowledge and a proven strategy. That being said, it is very much doable. This is where you need to look at the big picture and see what the big players are thinking and doing.

The S&P 500 (SPX) keeps on making new highs. We have been keeping our eyes on it for a long while now. We do believe that at some point in the future it is going to decline below this trend line support that used to be a strong resistance. The last time that happened was in September, 2018. We saw how Bitcoin (BTC) followed the index and crashed in November, 2018. This is because most major players look at what is happening in larger markets like the stock market or the currency market and currency pairs like EUR/USD or USD/CNY that have historically had a strong impact on the price of Bitcoin (BTC) and therefore the rest of the cryptocurrency market.