MagicPoopCannon

BTC Challenge of ATH Inevitable, But Could Retest 13,800 First

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Hi friends! Welcome to this update analysis on Bitcoin! Looking here at the daily chart , we can see that BTC has rapidly risen towards 17,000, after breaking out above 14,000. In my analysis titled "BTC Tests HUGE Resistance! Upside Break Could Reach 17,200!" from May 16th, we can see that has happened EXACTLY.

At the moment, it's important to know that 17,000 is a critical level for many reasons. Firstly, you can see that a prominent peak was formed in January of 2018 (right after the all time high) at the 17,100 level. You can see that with the yellow horizontal trendline. The volatility at that peak was obviously quite severe. So, there is a good chance that it will act as initial resistance. Furthermore, if we look at the structure of the chart, from October 2019 to today, we can see that BTC formed a clear inverted head and shoulders pattern. There is a well defined neckline (black trendline) with a clear left shoulder LS, a head H, and a right shoulder RS . After price broke out above the neckline, it returned to it and held it as support through the entire month of September. That was a key indicator that BTC was confirming the inverted head and shoulders pattern. Looking at the price target of the inverted head and shoulders pattern, you can see that the size of the head projects a rise exactly to the 17,000 level, as shown with the vertical dotted lines. So, BTC has essentially reached the price target of the inverted head and shoulders pattern, which coincides exactly with the pivot high from January 2018.

Additionally, we can see that the MACD is at a point of resistance (pink horizontal trendline.) The current level on the MACD is the exact same as it was at the peak that was formed in June of 2019, and it hasn't been at that level since then. Additionally, the MACD is showing signs of a potential bearish crossover.

One final thing to note is that the volume has been falling while price has been rising. This is a bearish indicator, showing that the trading activity is supporting the elevating prices at a decreasing rate. Ultimately, we will have to see if the 17,000 level acts as resistance. If BTC cannot breakout above it, I think there is a decent chance that we could see BTC return to the 13,800 level, to test and confirm it as support. Then, we could see the final explosion towards the 20,000 level, where BTC will inevitably test the all time high. Whether we pull back from 17K or not, I do believe that BTC will undoubtedly retest the all time high.

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-