2020 trend : Halving, Trendlines and Logarithmic scale.
Hello fellas, before we start over with this new chart work of bitcoin analysis, I would like to say Happy New Year of 2020 I hope we can be a better in every aspects of this coming year and if we do make a failure back at 2019, I would like to apologize for it too. So, let's get back to the point and because today is a very special day which we are approaching the beginning of 2020, I would like to share about my analysis for 2020, about every possibilities that may or may not occur in the market.
First of all, I want to use the BITSTAMP chart because it provides more complete historical data comparing to the bitfinex. And I use the logarithmic scale to respond to skewness to large value of current bitcoin's price and to look at the multiplication factors. we can see from this method of scale, 2 important trend lines has occured. The first trend line is the white trend line, this is the trend line that has been formed since August 2012 when it acted as a resistance trend line at that time before it became the supporting trend line on August 2015. The second trend line is a support trend line that has been formed since July 2013 which I draw it with the yellow trend line.
Beside all of this trend line, I try to look for the confluence zone that may have a strong probability to become the next support zone for bitcoin. From my perspective, I find 2 important zone for bitcoin's potential support in the future if THE PRICE BREAKS DOWN OF THE WHITE TREND LINE. The first zone is the $3300 region which will become the strongest support in this set up because it has an alignment with the yellow support trend line and the second support will be around $1000 region which became the top of resistance back at November 2013. and between this 2 support zone, I see a potential shadow support around the $1800 region to be a good place of consolidation.
I'm fully aware of the next bitcoin halving will occur in 2020 which at previous events, the price always surged to the upside and make a huge rally to the upside. But, it's now totally different. bitcoin and cryptocurrency are in different era as of now because we see at current condition the derivatives trading is becoming an important role of current market conditions. This time might be different and this time I will bet that we might see a new floor between $3000 - $1000 region which will shock the entire crypto universe. Happy new year!
First of all, I want to use the BITSTAMP chart because it provides more complete historical data comparing to the bitfinex. And I use the logarithmic scale to respond to skewness to large value of current bitcoin's price and to look at the multiplication factors. we can see from this method of scale, 2 important trend lines has occured. The first trend line is the white trend line, this is the trend line that has been formed since August 2012 when it acted as a resistance trend line at that time before it became the supporting trend line on August 2015. The second trend line is a support trend line that has been formed since July 2013 which I draw it with the yellow trend line.
Beside all of this trend line, I try to look for the confluence zone that may have a strong probability to become the next support zone for bitcoin. From my perspective, I find 2 important zone for bitcoin's potential support in the future if THE PRICE BREAKS DOWN OF THE WHITE TREND LINE. The first zone is the $3300 region which will become the strongest support in this set up because it has an alignment with the yellow support trend line and the second support will be around $1000 region which became the top of resistance back at November 2013. and between this 2 support zone, I see a potential shadow support around the $1800 region to be a good place of consolidation.
I'm fully aware of the next bitcoin halving will occur in 2020 which at previous events, the price always surged to the upside and make a huge rally to the upside. But, it's now totally different. bitcoin and cryptocurrency are in different era as of now because we see at current condition the derivatives trading is becoming an important role of current market conditions. This time might be different and this time I will bet that we might see a new floor between $3000 - $1000 region which will shock the entire crypto universe. Happy new year!
