This is a daily chart for BTCUSD on Bitstamp.
The most obvious thing I want to highlight is the battle at the 0.382 Fib level.
It is very very common for an asset to have a few checks and tests off of 0.382.
And BTC is no exception.
For the past few months, we've witnessed a battle between Bulls V Bears at 0.382.
Now, bull and bear volume has been declining. Who will take over?
It seems like the technical bearish pattern Cup and Handle has surfaced.
The Cup and Handle target is projected downward,
equal to the distance between the neckline and the highest point of the Cup and Handle.
This projection takes us right around the 0.618 and 0.786 levels.
These levels are very common to show reversals.
And around this level, the price is around $6K.
Funny, this is around double the last bottom ($3.1K).
Why am I bringing this up? Remember, if you consider Bitcoin
as a commodity, then you must remember that a commodity's price will gravitate to its cost of production over time.
With difficulty increasing, we know that CoP will increase over time, and that BTC will have higher bottoms, at least for the short to medium term.
So, it makes sense for BTC to follow this Cup and Handle projection.
But remember, the market can do any damn thing it wants; we'll just have to wait and see ;)
The most obvious thing I want to highlight is the battle at the 0.382 Fib level.
It is very very common for an asset to have a few checks and tests off of 0.382.
And BTC is no exception.
For the past few months, we've witnessed a battle between Bulls V Bears at 0.382.
Now, bull and bear volume has been declining. Who will take over?
It seems like the technical bearish pattern Cup and Handle has surfaced.
The Cup and Handle target is projected downward,
equal to the distance between the neckline and the highest point of the Cup and Handle.
This projection takes us right around the 0.618 and 0.786 levels.
These levels are very common to show reversals.
And around this level, the price is around $6K.
Funny, this is around double the last bottom ($3.1K).
Why am I bringing this up? Remember, if you consider Bitcoin
as a commodity, then you must remember that a commodity's price will gravitate to its cost of production over time.
With difficulty increasing, we know that CoP will increase over time, and that BTC will have higher bottoms, at least for the short to medium term.
So, it makes sense for BTC to follow this Cup and Handle projection.
But remember, the market can do any damn thing it wants; we'll just have to wait and see ;)
