Bitcoin is at Critical Resistance! Here's What's Next! (BLX)
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the weekly BLX log chart, we can see that bitcoin has been on a steady march higher for the past few weeks. However, we are currently running into the weekly 200 EMA (in orange.) As you can see, Bitcoin failed to surpass this overhead resistance the last time we ran into it, which was after the current low was put in during December. Now, we are retesting that level to see if it will continue to provide resistance. I think the most likely scenario is that it WILL continue to be resistive, and that Bitcoin will chop sideways for an extended period of time below the weekly 200 EMA. However, just below that is the weekly 200 MA (in grey.) That is what we held during the low of December. So, as I've said before, I think there is a high probability that we return to the weekly 200 MA, to test it for support. That is what makes sense. Since we are just starting to cool off in this year long bear market, it is more likely that we will fall to retest support, before we breakout above powerful resistance, which is the weekly 200 EMA.
In this analysis, is one of the most interesting things about the entire crypto market, in my opinion. Looking at the RSI, you can see that the last bear market formed a RSI spike down into oversold territory on September 29th of 2014. Then, there was another spike into oversold territory on January 12th of 2015. Looking at today's price action, we can see that in December we had a spike down into oversold territory, and I think we will eventually see another spike down. However, that doesn't necessarily mean that Bitcoin will put in a severely deeper low. Based on my analysis of the linear rise and fall of the market cycles of Bitcoin, I see that there could be one more lower low, or a test of the current low, sometime near October of this year. Interestingly, October matches up perfectly with the bottom of my rising price arch on the log chart, which is also intersected by the December low. So, based on these technicals, I think there is a good chance the December low could be revisited in October. That is also why I believe that we will see the market chop sideways between 3000 and 4500 for the majority of the year. However, in the near term, I do expect price to return to the downside, as it will most likely be rejected by resistance at the weekly 200 EMA. Keep in mind, we haven't even come into contact with the rising price arch (in blue) yet. In my view, that will happen at some point, before we enter the next bull market. I don't expect the next bull market to begin until sometime late this year, or early 2020.
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-
In this analysis, is one of the most interesting things about the entire crypto market, in my opinion. Looking at the RSI, you can see that the last bear market formed a RSI spike down into oversold territory on September 29th of 2014. Then, there was another spike into oversold territory on January 12th of 2015. Looking at today's price action, we can see that in December we had a spike down into oversold territory, and I think we will eventually see another spike down. However, that doesn't necessarily mean that Bitcoin will put in a severely deeper low. Based on my analysis of the linear rise and fall of the market cycles of Bitcoin, I see that there could be one more lower low, or a test of the current low, sometime near October of this year. Interestingly, October matches up perfectly with the bottom of my rising price arch on the log chart, which is also intersected by the December low. So, based on these technicals, I think there is a good chance the December low could be revisited in October. That is also why I believe that we will see the market chop sideways between 3000 and 4500 for the majority of the year. However, in the near term, I do expect price to return to the downside, as it will most likely be rejected by resistance at the weekly 200 EMA. Keep in mind, we haven't even come into contact with the rising price arch (in blue) yet. In my view, that will happen at some point, before we enter the next bull market. I don't expect the next bull market to begin until sometime late this year, or early 2020.
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-