Yesterday I showed you why I believe that we could be heading to the 13500 level. Today, I'm going to show you why that could happen in a matter of days, or just a few weeks. If we look at "Move A," you can see that it has two distinct peaks, and then a hard rally that follows. That rally was 83.16%. At the time, I thought that move A would most likely roll over into a head and shoulders pattern, but that turned out to be incorrect. Now, I see that there is a similarity, between what move A looked like, and what Move B is looking like. Move B also has two distinct peaks, followed by what appears to be the beginning stages of a powerful rally higher.
Here is the insanely interesting part. If we look at the percentage gain from the low after the second peak of Move A, to the peak of Move B, we can see that it was about 83%. If we take see a similar rally (based on the similarity of the pattern, it takes us EXACTLY to the 61.8% retrace at 13,500, which is the target for the downtrend channel breakout that I posted about on the last analysis. Oh yeah, did I mention that it's also an 83% rise? It all looks good on paper, but nothing is certain. Bitcoin could crash and burn tomorrow for all we know. However, based on the data on the charts, I see a very real possibility that we could explode higher, particularly if BTC starts to trade above the 9100 high from May 30th. That's actually the condition that this analysis is based on. Obviously, we have to surpass that overhead resistance, for the market to start moving in the direction projected by this analysis. If we don't surpass 9100, then we obviously aren't going to 13500. Furthermore, there are several big resistance levels before 13500, and any one of them could act as resistance — particularly up to 10000.
With that said, it is extremely likely that if we surpass 10000, BTC is going to absolutely RIP higher. There are virtually no sell orders above 10K. The sky is the limit from there, but I think a rally above 10K will likely be capped off around 13500. At that point, the NVT will probably initiate a nuclear core meltdown in Bitcoin. But let's take it one step at a time. For now, support is being held above the downtrend channel. Price is rallying higher. We are staying above the EMA ribbon. The NVT has retreated from the sell signal. Momentum is beginning to curl up on the ADX and DI. Money flow is increasing, and the MACD has printed a bullish crossover. The stars are aligning for a really big move here, and the technicals say that it's going to be to the upside.
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-
Here is the insanely interesting part. If we look at the percentage gain from the low after the second peak of Move A, to the peak of Move B, we can see that it was about 83%. If we take see a similar rally (based on the similarity of the pattern, it takes us EXACTLY to the 61.8% retrace at 13,500, which is the target for the downtrend channel breakout that I posted about on the last analysis. Oh yeah, did I mention that it's also an 83% rise? It all looks good on paper, but nothing is certain. Bitcoin could crash and burn tomorrow for all we know. However, based on the data on the charts, I see a very real possibility that we could explode higher, particularly if BTC starts to trade above the 9100 high from May 30th. That's actually the condition that this analysis is based on. Obviously, we have to surpass that overhead resistance, for the market to start moving in the direction projected by this analysis. If we don't surpass 9100, then we obviously aren't going to 13500. Furthermore, there are several big resistance levels before 13500, and any one of them could act as resistance — particularly up to 10000.
With that said, it is extremely likely that if we surpass 10000, BTC is going to absolutely RIP higher. There are virtually no sell orders above 10K. The sky is the limit from there, but I think a rally above 10K will likely be capped off around 13500. At that point, the NVT will probably initiate a nuclear core meltdown in Bitcoin. But let's take it one step at a time. For now, support is being held above the downtrend channel. Price is rallying higher. We are staying above the EMA ribbon. The NVT has retreated from the sell signal. Momentum is beginning to curl up on the ADX and DI. Money flow is increasing, and the MACD has printed a bullish crossover. The stars are aligning for a really big move here, and the technicals say that it's going to be to the upside.
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-