Odds Increasing That The Bitcoin Bear is Dead! (BTC)(BLX)
The likelihood that the market has bottomed just increased greatly. We can see that Bitcoin has rallied sharply, before it even came into direct contact with the weekly 200 MA (in pink.) Looking at the current chart on the left, we can see that BTC has rallied back into the triangle formation that it broke down from. That is very bullish, assuming that BTC can close the daily candle inside of the triangle. If that happens, it would be ideal if BTC could rally above the 50 EMA (in orange) like it did on the 2015 chart.
Speaking of the 2015 chart, we can see that price did temporarily break down below the triangle, but then rallied back above the apex of it, while simultaneously surpassing the 50 EMA. The similarities between the two are labeled on the charts. As you can see, there is a slight difference, but we are trending in a similar way to the way price moved at the exact bottom of the last bear market.
Admittedly, I was expecting a move lower, more than a move higher. However, I was lucky enough to spot the breakout in Litecoin above it's downtrend channel as soon as it began to happen, and I went long, capturing a nice 30% rise. Also, as soon as LTC began to move, I figured BTC would follow suit. If you recall from my LTC analysis on the 2nd, I said "if price breaks out above the top of the downtrend channel, that would be a deviation from the fractal pattern, and it would be a technical buy signal." That is what materialized, and so now the LTC downtrend fractal has been shattered, and BTC has broken back into the triangle, in a way that is similar to what was seen in 2015. So, I think the BTC bottoming fractal could be prevailing here. If BTC can rally above the 50 EMA, and then to the top of the downtrend channel, that would be the icing on the cake. In my opinion, that would basically confirm that the bear market has ended.
What we DON'T want to see, is a failure for BTC to close the daily candle inside of the blue triangle. If we see that, it would essentially be a failed attempt to rally back into the triangle. So, it's very important here, that BTC closes inside of the triangle.
In terms of volume, we can see that it is nearly double the average, and the MACD has turned sharply to the upside.
Lastly, there were a few people questioning why I said "Make no mistake, this price action is determining if the bottom is in or not. If BTC can continue to hold these levels, then that is confirmation that the bottom is in for the bear market." As we can see, the fractal pattern is holding, and it appears as though the weekly 200 MA (in pink) is also holding. Such price action greatly supports the theory that we have bottomed, and that the 2018 bear market has come to an end. For that to remain true, price should continue to trend higher, as it did in 2015. The more we hold the weekly 200 MA, and move in sync with the 2015 bear market bottom, the more evidence we have to support the case for the death of the bear.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Speaking of the 2015 chart, we can see that price did temporarily break down below the triangle, but then rallied back above the apex of it, while simultaneously surpassing the 50 EMA. The similarities between the two are labeled on the charts. As you can see, there is a slight difference, but we are trending in a similar way to the way price moved at the exact bottom of the last bear market.
Admittedly, I was expecting a move lower, more than a move higher. However, I was lucky enough to spot the breakout in Litecoin above it's downtrend channel as soon as it began to happen, and I went long, capturing a nice 30% rise. Also, as soon as LTC began to move, I figured BTC would follow suit. If you recall from my LTC analysis on the 2nd, I said "if price breaks out above the top of the downtrend channel, that would be a deviation from the fractal pattern, and it would be a technical buy signal." That is what materialized, and so now the LTC downtrend fractal has been shattered, and BTC has broken back into the triangle, in a way that is similar to what was seen in 2015. So, I think the BTC bottoming fractal could be prevailing here. If BTC can rally above the 50 EMA, and then to the top of the downtrend channel, that would be the icing on the cake. In my opinion, that would basically confirm that the bear market has ended.
What we DON'T want to see, is a failure for BTC to close the daily candle inside of the blue triangle. If we see that, it would essentially be a failed attempt to rally back into the triangle. So, it's very important here, that BTC closes inside of the triangle.
In terms of volume, we can see that it is nearly double the average, and the MACD has turned sharply to the upside.
Lastly, there were a few people questioning why I said "Make no mistake, this price action is determining if the bottom is in or not. If BTC can continue to hold these levels, then that is confirmation that the bottom is in for the bear market." As we can see, the fractal pattern is holding, and it appears as though the weekly 200 MA (in pink) is also holding. Such price action greatly supports the theory that we have bottomed, and that the 2018 bear market has come to an end. For that to remain true, price should continue to trend higher, as it did in 2015. The more we hold the weekly 200 MA, and move in sync with the 2015 bear market bottom, the more evidence we have to support the case for the death of the bear.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-