Hi Traders!
Today we're looking again at bitcoin, but this time with the long-term lenses.
Currently, halving comes out on May 11, 2020, and many people have speculated based on the past that if history repeats, we should grow before halving. Subsequently, in the halving period, we would slightly decline (even consolidate) and grow again. The bitter surprise is that halving is around the corner and bitcoin is falling. So we offer 3 basic scenarios.
1. Bullish scenario
Right now we are near the bottom and the lower trend line will support us. A bounce will come from there, and we'll climb towards the top of the trend line, we can get through it and get into the bullish zone. There is also strong resistance around the trend line.
2. Bearish scenario
In this case, the lower trendline won't support us and we'll break it down. This would be an extreme bearish situation, we cannot fully imagine what would follow then. But we have to take it into consideration.
3. Complete triangle fill-up
Two basic trend lines make up a triangle together and it's possible that we could bounce off the bottom and go up to the top line, where rejection would come across and we would go back to the bottom and the final decision would take place there. However, this move could take up to 3-4 months and would be very challenging for trading.
Which scenario do you find the most likely? To us, the last one, because both bullish and bearish scenario represents huge extremes even for cryptocurrencies.
May the crypto be with you!
Today we're looking again at bitcoin, but this time with the long-term lenses.
Currently, halving comes out on May 11, 2020, and many people have speculated based on the past that if history repeats, we should grow before halving. Subsequently, in the halving period, we would slightly decline (even consolidate) and grow again. The bitter surprise is that halving is around the corner and bitcoin is falling. So we offer 3 basic scenarios.
1. Bullish scenario
Right now we are near the bottom and the lower trend line will support us. A bounce will come from there, and we'll climb towards the top of the trend line, we can get through it and get into the bullish zone. There is also strong resistance around the trend line.
2. Bearish scenario
In this case, the lower trendline won't support us and we'll break it down. This would be an extreme bearish situation, we cannot fully imagine what would follow then. But we have to take it into consideration.
3. Complete triangle fill-up
Two basic trend lines make up a triangle together and it's possible that we could bounce off the bottom and go up to the top line, where rejection would come across and we would go back to the bottom and the final decision would take place there. However, this move could take up to 3-4 months and would be very challenging for trading.
Which scenario do you find the most likely? To us, the last one, because both bullish and bearish scenario represents huge extremes even for cryptocurrencies.
May the crypto be with you!