Note: The chart is shown on the COINFLOOR:BTCGBP though
BTCUSD
are nearly twins of each other.
Why I think we are nearing the reversal:
* We are still in the down trend (the channel marked by the red lines).
* We are forming a head and shoulders pattern, which would indicate the incoming drop (short term though). The drop will bounce of the current support, at around £4500.
* It will become the part of reversed head and shoulders which will reverse the trend into bullish.
Confirming signals:
* The closer we will move to the right red line the smaller the bounces between the baselines of £4500 and £6200 will become.
* The movement should slowly align with the green trend lines.
IMPORTANT: This is merely a plan of the game, which makes sense at the time of making the chart, though as we know in reality it will be different. Let's see.
Best case outcome: The down trend will be broken around March.
Worst case outcome: The down trend will be broken later as we will drop to retest the £3000 support.
BTCUSD
are nearly twins of each other. Why I think we are nearing the reversal:
* We are still in the down trend (the channel marked by the red lines).
* We are forming a head and shoulders pattern, which would indicate the incoming drop (short term though). The drop will bounce of the current support, at around £4500.
* It will become the part of reversed head and shoulders which will reverse the trend into bullish.
Confirming signals:
* The closer we will move to the right red line the smaller the bounces between the baselines of £4500 and £6200 will become.
* The movement should slowly align with the green trend lines.
IMPORTANT: This is merely a plan of the game, which makes sense at the time of making the chart, though as we know in reality it will be different. Let's see.
Best case outcome: The down trend will be broken around March.
Worst case outcome: The down trend will be broken later as we will drop to retest the £3000 support.
Comment:
It looks like the bitcoin decided to go up sooner rather than later. Let's watch patiently and see if we break the down trend.
Trade closed manually:
Bitcoin went on its way. Too much out of my prediction, so no point to keep this open. We are still in the down trend so it still has a chance to bounce down though now it is a different story where the prediction does not apply. Best.