Why I would sell Bitcoin at $130


Why I would sell Bitcoin at $130

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One Bitcoin is valued at $128.76 at the time of writing, dangerously approaching the resistance level of 130 US dollars. Technically speaking that resistance level would be enough to convince me to sell any Bitcoin I would had previously bought for around 50 to 55 dollars or to short-sell. Given the fact though that I have no experience of the Bitcoin exchanges or even the slightest idea of whether short-selling Bitcoin is actually allowed, I’m merely left to predict a reversal of this week’s up trend.


The support and resistance level of Bitcoin at 130 dollars is quite important. The digital currency had previously found support when it collapsed from $250 on April 10. Three days earlier I had written in my Greek blog why I wouldn’t invest in the Bitcoin’s bubble when Bitcoin was still trading for $140. Although Bitcoin’s price almost doubled shortly afterwards, in the end we’d better have bought Bitcoins for $50 a couple of days later. Of course investing in Bitcoins at that time might have seemed quite risky, despite the fact that quite a few investors actually bought the first time Bitcoin found support there, as the volume graph shows. Perhaps they trusted the round number of $50 which had also been a support level back on March 23.

Anyway, I find much more attractive a buy on April 16, when Bitcoin was again valued at $50 for the second time in a matter of days, forming a double bottom. Apart from the support level, additional technical indicators, such as the doji candlestick drawn at the first bottom, further improved the level’s significance.

I would say that since the outstanding skyrocketing price of Bitcoin and the even more frightening decline that followed, Bitcoin will most probably trade at prices inside the channel between $50 and 130 the next days. Of course, predictions are not bullet-proof and I can’t rule out a possible breakout at prices higher than $135. On the other hand, I would much rather buy Bitcoin for $50 and sell at the resistance area of $130, than buy at a price level where several sellers found attractive in the past.

Side-note: Until I finish writing this post, Bitcoin has hit $135! Maybe those who have been selling gold futures lately have turned into Bitcoin investors!


The 4-hour Bitcoin graphs come from bitcoin.clarkmoody.com.

Jim entered the financial world by trading sports and now invests in US stock markets and forex, trying to buy low and sell high. Connect with Jim: StockTwits | TradingView