What we're looking at since 6 February is BTC making gradual bullish waves. On that day BTC started it's upward movement (2nd part of the Head) through the first sign of reversal i.e. Inverted Head & Shoulders. Now we are here trying to break $10,000.
As you can also see ALTS are not making much progress. Some are but the majority aren't. This is mainly because of fear. Fear that BTC will drop. Although many predicted a drop in BTC, they did so following $9,500 testing. So this fear has cautioned investors that this is the moment BTC starts going rogue.
A parallel channel has been drawn from highest point to the next significant lower high and below the lower lows cutting through noise mainly caused by excess FUD. A trend line is drawn from recent lower highs which cut through the $9,000 resistance level which is now support. Hence it's safe to say that if BTC cracks $9,000 support it could result in a free fall and would need to re-establish bottom.
Parallel channel cut through our fib retracement at $11,300. When I say cut it means the one which makes sense the most. $9,000 (0.786 fib) was our support and the target price is at $11,300 (0.618 fib). This price target will help BTC keep above $10,000 and confirm the Inverted Head & Shoulder reversal pattern and see bullish days ahead.
However investors like to camp (buy or sell) on "imaginary" resistance/support levels i.e. $10,000 / $11,000. This creates multiple resistance levels before our $11,300 target. BTC made one hell of a run and RSI stands at 72 on 4 hour chart meaning that it's currently overbought. I'd rather BTC makes gradual gains rather than spikes out of nowhere because spikes do not reflect true value and are usually followed by corrections. Hence if BTC has any hope of staying up, slow and steady is the way forward.
As you can also see ALTS are not making much progress. Some are but the majority aren't. This is mainly because of fear. Fear that BTC will drop. Although many predicted a drop in BTC, they did so following $9,500 testing. So this fear has cautioned investors that this is the moment BTC starts going rogue.
A parallel channel has been drawn from highest point to the next significant lower high and below the lower lows cutting through noise mainly caused by excess FUD. A trend line is drawn from recent lower highs which cut through the $9,000 resistance level which is now support. Hence it's safe to say that if BTC cracks $9,000 support it could result in a free fall and would need to re-establish bottom.
Parallel channel cut through our fib retracement at $11,300. When I say cut it means the one which makes sense the most. $9,000 (0.786 fib) was our support and the target price is at $11,300 (0.618 fib). This price target will help BTC keep above $10,000 and confirm the Inverted Head & Shoulder reversal pattern and see bullish days ahead.
However investors like to camp (buy or sell) on "imaginary" resistance/support levels i.e. $10,000 / $11,000. This creates multiple resistance levels before our $11,300 target. BTC made one hell of a run and RSI stands at 72 on 4 hour chart meaning that it's currently overbought. I'd rather BTC makes gradual gains rather than spikes out of nowhere because spikes do not reflect true value and are usually followed by corrections. Hence if BTC has any hope of staying up, slow and steady is the way forward.
Trade closed: target reached:
Target reached and exceeded. I expect one more run followed by a correction.
Gradual gains is the way to go. We don't want any spikes/fake-outs. That way we know for sure BTC is bullish and realistic in this climb.