In life, sometimes you need to experience the lows in order to appreciate the highs and in regard to digital currencies, things are no different…
Without a drop in share values, there’s no room for an increase to follow and it’s virtually impossible for stock prices to exponentially climb upward without ever letting off the gas.
With that said, Bitcoin has experienced yet another significant downfall as shares slimmed down from the mid $7,000 range to the low $6,000s.
While the trajectory of the crypto giant may not look all that good on paper, this recent activity is hinting towards a rebound.
The last time we saw similar numbers as this, the currency managed to rally 22%, adding close to a grand in its overall market value.
As always, nothing is set in stone, but an increase does appear to be underway. I’ll explain why and how you can take advantage of these profits that are expected to arrive sometime in the near future.
One effective tool for predicting the movement of certain stock charts is the so-called Williams %R Indicator.
Don’t worry, I won’t bore you with all the details. Just know that this indicator moves between values of 0 and -100 and is used to measure the health of corresponding shares. In short, it’s perfect for signifying entry and exit points in terms of trading.
Right now, Bitcoin is showing a mark under -80, which shows that it’s oversold and could mean that it’s a good time to hop on the crypto train.
As I mentioned, the last time this happened, Bitcoin values jumped from $6,017 to $7,361!
Although there’s never a 100% guarantee when it comes to trading along Wall Street, who’s to say that Bitcoin won’t act similarly to the last time it took a dip like this?
Either way, Bitcoin bulls (myself included) are taking comfort in optimistic views as the virtual currency is on pace to propel its way back up this week.
At first glance, this drop seems like a negative, but judging by Bitcoin’s previous activity, it now appears to be a blessing in disguise. The cryptocurrency has hit a bottom and there’s only one direction left for it to go… UP.
Feel free to try your luck at some of these potential gains but proceed with caution. If things do happen to pan out like they did before, then you could have a quick 22% profit to show for it.
