As The Whole World Watches, Bitcoin Flashes Bull Signs! (BTC)

MagicPoopCannon Updated   
COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour chart, we can see that BTC is just starting to get above the top of that big bull flag! Admittedly, volume is very light, and that's because price is still inside of this sideways choppy consolidation area that we've been in for the past week. Regardless, getting above the bull flag is a good sign, and it increases the odds that we will see a completion of this potential inverted head and shoulders pattern (in green.)

As you can see, the ever important 300 EMA (in orange,) which is equivalent to the 50 EMA from the daily chart , is converging with the neckline of the IH&S pattern (in blue,) as well as the center-line of the downtrend channel (dashed grey trendline.) So, there are three resistance areas that are converging, just above the current price action. If BTC can get it's booty up there, and then break out to the upside, it would be taking out three resistance levels simultaneously. That would undoubtedly produce a sharp rally to the upside. I'm pretty sure that everyone, their mother, their dog, and even the mice are watching to see if this inverted head and shoulders pattern breaks out. So, if it does, I'd be willing to bet that the rally that ensues would be very powerful. For now, I'm watching to see if we can even complete the right shoulder, much like the rest of the world. A breakout to the upside will send LTC to the top of the downtrend channel in pink, somewhere in the low $5000s.

On the MACD , we have a bullish crossover as the MACD is beginning to cross above the zero line as well. Those things are also happening on the back of a bullish divergence that was recently printed. So, it definitely looks like the market is at an inflection point. If you recall back to my morning star BTC analysis (linked below) things have been looking better and better, since that pattern was printed. The morning star was printed on the exact bottom of this entire move, and it's a pattern that can precede powerful market reversals. It's interesting to note that the technical picture has been improving ever since then. However, we still don't have a higher high on the chart. So, we cannot lose sight of the fact that we are still in a bear market downtrend, despite the fact that we appear to be forming an inflection point.

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.***

Comment: Here's where I gave you the morning star, which was the exact bottom of this move.

Comment: Correction: A breakout to the upside will send BTC*** to the top of the downtrend channel in pink, somewhere in the low $5000s.


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