In this analysis I want to take a look at one of my favorite personal indicators: Bitcoin Logarithmic Price Bands. You can find a detailed explanation of the indicator below.
In short, this indicator tries to predict future areas of extreme opportunity. Buy in the green and sell in the red. However, I also added a yellow band in the middle which surprisingly lined up very well with areas of historical resistance (purple circles) and support.
As of this week, Bitcoin has reached the yellow band for the first time within ~2 years. During two previous bull-cycles this area marked a mid-cycle top and caused a major reversal.
My view is still that we will make a new ATH in before the halving. However, that would mean that the price would still be within the yellow band. The top of the yellow band is currently placed at 77.000, so we still have a lot of room theoretically.
Now that the ETF is here it remains to be seen whether BTC will respect historical price bands. Nevertheless, it's without a question that BTC is entering a major area of resistance around the current all-time high of 69k.
Do you think we're going to see a new all-time high soon? Time for reversal? Share your thoughts 🙏
Maybe a minor dip in March but no big dump yet. I also believe new ATH before Halving, but I also think the end of this cycle will be a lot sooner than many think.
I've loved and utilized this logo chart for years. Definitely worth having handy. As for reaching ATH's, it's pretty clear that we're going to blast through ATH's - there's just too much liquidity to be taken. How far beyond the ATH we go remains to be seen. If you follow retail psychology for an asset like this, it's very likely that a blow-off top is about to happen. After that - we will crash hard. Not sure when, but the amount of leverage and greed in the system right now is flat out absurd. Twitter degens are making 100,000s of thousands by simply YOLO'ing in with leverage. It always comes back to bite them. The Market Maker never loses. Never. But until then, we all play the worlds largest game of "Game Theory" on BTC (i.e., who will hold longest)
aminzoghi92
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I personally believe any correction will be after halving . would you plz have a analysis about hisyory of btc and its halving and price reaation?
Very interesting post Considering what it did after touching that zone in 2019, we can expect a drop from here to the green zone, so, even a drop under 20k... Thanks for sharing
MyCryptoParadise_Nathan
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I am expecting 64k atleast in next week, thats my 1st target
Cosmosshah
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Very hard to say wich one will happend first. technically it can give us - 20 to 30 % drop but fundamentally with this buy pressure from after ETF'S approval i think we need more evidence
FieryTrading
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@Cosmosshah, Correct, reaching this area does not mean we have to go down. However, a rejection could indicate further downwards pressure. Doubt we will reverse with the ETF buying though...