Bitcoin And Ethereum: An Analysis Of Key Price Levels To Watch – Forbes

Bitcoin And Ethereum: An Analysis Of Key Price Levels To Watch - Forbes

After yet another wild weekend of cryptocurrency movement, it’s possible to identify levels of danger for investors and for traders. Most trade-able assets take Saturday and Sunday off but not bitcoin and friends. The cryptos like to find new price levels or re-visit old ones, up or down, depending on the weekend.

This time around, it’s the old levels that attract attention. If you’re a investor, for example, of Bitcoin, then you’re probably of the “HODL” persuasion. That is, “hold on for dear life” whatever the short term moves may be. For these types of buyers, the only thing that counts is the long-term, thought to be heavenly or close.

Those who think of themselves as traders have a different perspective: volatility is good because it provides opportunities to get in and get out, over and over. Rally, sell-off, rally, sell-off — a trader is looking for buy spots and sell spots based on certain types of discipline.

For the long-term view generally taken by those who call themselves investors, here’s the monthly Bitcoin price chart:

The breakout above the 20,000 level of late 2017 is clear. The extraordinary move up to 42,000 by early 2021 is clear. You can see how Bitcoin quickly sold off by about 20% after hitting that high. It’s odd to see the lower level of
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