This weekend Bitcoin tested the prior All Time High (ATH) and current Resistance since March 13 (almost 1 month of trading below it). The pattern on the 1D time-frame is Inverse Head and Shoulders (IHS) and I am sure most of you are familiar with.
This pattern has been quite bullish for Bitcoin especially during periods of clear medium/ long-term uptrends, like the current parabola we are at. Since the start of it (October 2020) we have seen one more clear IHS. When the price broke its Resistance then, BTC rose aggressively (Dec 16, 2020 - Jan 08, 2021). Notice how the bullish leg that led to that IHS was as strong as the bullish leg that followed after the Resistance (neckline of the IHS) broke and I illustrate that using the 1.0/ 2.0 Fibs.
If we look back in Bitcoin's recent price action during uptrends/ parabolas, we will see that this symmetrical extension is not all that uncommon. During the 2019 Parabola that was initiated on the Libra news after BTC formed its Bear Cycle Bottom at $3200, we have two such occurrences as you see on the chart below, both reaching the 2.0 Fib extension.
Going back more to the previous Bull Cycle and the final phase of the Parabola (see chart below) from July to December 2017, we see that again we have two IHS formations, both reaching the 2.0 Fib.
Note that I am not looking into the many IHS that were formed on bottoms during uptrend corrections or Bear Cycles, only patterns with similar parameters as the current IHS.
So in conclusion, if the same dynamic plays out, then Bitcoin should soon reach the 2.0 Fibonacci extension which is at $88000! Is that realistic for you or not? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
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This pattern has been quite bullish for Bitcoin especially during periods of clear medium/ long-term uptrends, like the current parabola we are at. Since the start of it (October 2020) we have seen one more clear IHS. When the price broke its Resistance then, BTC rose aggressively (Dec 16, 2020 - Jan 08, 2021). Notice how the bullish leg that led to that IHS was as strong as the bullish leg that followed after the Resistance (neckline of the IHS) broke and I illustrate that using the 1.0/ 2.0 Fibs.
If we look back in Bitcoin's recent price action during uptrends/ parabolas, we will see that this symmetrical extension is not all that uncommon. During the 2019 Parabola that was initiated on the Libra news after BTC formed its Bear Cycle Bottom at $3200, we have two such occurrences as you see on the chart below, both reaching the 2.0 Fib extension.
Going back more to the previous Bull Cycle and the final phase of the Parabola (see chart below) from July to December 2017, we see that again we have two IHS formations, both reaching the 2.0 Fib.
Note that I am not looking into the many IHS that were formed on bottoms during uptrend corrections or Bear Cycles, only patterns with similar parameters as the current IHS.
So in conclusion, if the same dynamic plays out, then Bitcoin should soon reach the 2.0 Fibonacci extension which is at $88000! Is that realistic for you or not? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
--------------------------------------------------------------------------------------------------------
!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!
🎉 👍 Shout-out to TradingShot's 💰 top TradingView Coin donor 💰 this week ==> hujianghua
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