BITCOIN - Is this it? Have we just experienced major breakout?
Hi all,
This is my first published idea, hopefully this idea will bring another perspective to the conversation regarding where Bitcoin is heading.
I have noticed recently that many BTC analysis seem to have a different major resistance line than the one I have established since January which was established between the ATH in December and the second peak at roughly $17,200. Since then I have not readjusted this major resistance line.
However most chart analyst seem to have readjusted their lines on the third touch of this major resistance line at around $11,700. I don't believe this is correct. Instead, I think that was where many predicted BTC would reverse and therefore the bull action was major at that point. We did in fact experienced a failed breakout which would justify why the price action quickly fell after that. Since then, the price has been following the resistance line closely and has made contact with it to 'test' the waters indicating that BTC was not ready to breakout from it.
However, recently BTC has experienced little volatility and remained perfectly between a rising triangle in the range of $6400-$7000. Notice in my chart the dotted and the continuous blue line are major trend lines set months ago. These seem to converge perfectly towards this zone where we experienced a massive pump like we have not seen in a while accompanied of a massive spike in volume.
On the 4H timeframe BTC hugs perfectly this major resistance line before the massive pump. This makes me believe that this massive pump was actually the breakout from the major downtrend channel.
Where is BItcoin heading?
This would also make a lot of sense since we have had major positive news in recent days which I will be happy to post in updates if you wish. Tax season in USA is almost over and generally Q2 has always had good performances in cryptoland.
There are also many major Alt-coins that seem to have bottomed and have had little price action in the last 3 weeks. It seems like most speculators have left and only long term investors have remained. This would be the ideal opportunity to re-enter these Alt-coins with relatively reduced risk but with big returns.
This is my first published idea, hopefully this idea will bring another perspective to the conversation regarding where Bitcoin is heading.
I have noticed recently that many BTC analysis seem to have a different major resistance line than the one I have established since January which was established between the ATH in December and the second peak at roughly $17,200. Since then I have not readjusted this major resistance line.
However most chart analyst seem to have readjusted their lines on the third touch of this major resistance line at around $11,700. I don't believe this is correct. Instead, I think that was where many predicted BTC would reverse and therefore the bull action was major at that point. We did in fact experienced a failed breakout which would justify why the price action quickly fell after that. Since then, the price has been following the resistance line closely and has made contact with it to 'test' the waters indicating that BTC was not ready to breakout from it.
However, recently BTC has experienced little volatility and remained perfectly between a rising triangle in the range of $6400-$7000. Notice in my chart the dotted and the continuous blue line are major trend lines set months ago. These seem to converge perfectly towards this zone where we experienced a massive pump like we have not seen in a while accompanied of a massive spike in volume.
On the 4H timeframe BTC hugs perfectly this major resistance line before the massive pump. This makes me believe that this massive pump was actually the breakout from the major downtrend channel.
Where is BItcoin heading?
This would also make a lot of sense since we have had major positive news in recent days which I will be happy to post in updates if you wish. Tax season in USA is almost over and generally Q2 has always had good performances in cryptoland.
There are also many major Alt-coins that seem to have bottomed and have had little price action in the last 3 weeks. It seems like most speculators have left and only long term investors have remained. This would be the ideal opportunity to re-enter these Alt-coins with relatively reduced risk but with big returns.
Comment:
Please notice though I do not imply that this is the end of bearish action ;) BTC needs to define a new trend or follow the major support line previously established (blue continued line). A break under this major support line accompanied of both 50MA and 100MA under the 200MA would possibly mean a long term bearish momentum for BTC similar to the one experienced in 2014. As you can see the 100MA was getting too close for comfort to the MA200 so this would be the last opportunity for bulls to break out of the major bearing channel.