Bitcoin, where are you headed next? Over the last four days, Bitcoin has made a nice move higher and after a few attempts Bitcoin finally broke out above the long-term downtrend trend line.
So how important is this break above the trend line? In my opinion, it is somewhat important but does not mean it can't still go lower, Bitcoin could still reverse course and move lower and still remain above the trend line.
You can see that during the 2013/2014 boom and correction cycle the price of Bitcoin interacted many times with the downtrend trend line, both above and below while still moving lower.
On March 31st I published charts showing how I thought this boom and correction cycle shared similarities to the 2013/2014 boom and correction cycle. In it, I showed how if this boom and correction cycle equals the percentage drop of 2014, Bitcoin would bottom somewhere between $2000 and $4000. No matter what happens from here, it will be very interesting to watch how this correction unfolds.
I look at the price action of Bitcoin lately as a start of the bottoming process, again, I'm not saying the bottom has already been made, but just that this is a start of that process. In my opinion, at some point, we will see the price of Bitcoin transition from the downtrend and into an accumulation phase, just as it did during 2014 correction. On my chart, I show a support zone from about $6000 to $6500, Bitcoin has now bounced twice from that level. I also show a resistance zone around the $9000 level, which Bitcoin is now approaching. Could this be the start of the accumulation phase? Sure, I believe it could, we could see Bitcoin move sideways from here creating a channel between $6000 and $9000. Could Bitcoin still break below $6000 and create a bottom at a lower price? Sure it could. I know, I'm sorry, I wish I could tell you with 100% certainty that $6000 was the bottom and Bitcoin will only move higher fom here but I would rather be honest with you and just share what I believe are some of the possible scenarios.
So after all of that what is my outlook for cryptocurrencies? Long-term I remain bullish, my opinion is that this is just another boom and correction cycle just like Bitcoin has experienced in the past. I think this correction is just a healthy reset and after a period of accumulation (boring phase), Bitcoin along with other cryptocurrencies will enter another bull market. I have just started within the last week to make some small purchases of Bitcoin and several other cryptocurrencies (Bitcoin, Ethereum, Litecoin, Dash, Monero, NEO, OMG, UBIQ, CVC). My plan is to be patient because as I stated, I believe we are going to move into an accumultion phase at some point which will give me plenty of time to rebuild my positions.
I really appreciate you taking the time to read my opinions and I hope you all have a great rest of your weekend.
BigskyCrypto
Anyone with questions or comments can also email me at: info@bigskycrypto.com
So how important is this break above the trend line? In my opinion, it is somewhat important but does not mean it can't still go lower, Bitcoin could still reverse course and move lower and still remain above the trend line.
You can see that during the 2013/2014 boom and correction cycle the price of Bitcoin interacted many times with the downtrend trend line, both above and below while still moving lower.
On March 31st I published charts showing how I thought this boom and correction cycle shared similarities to the 2013/2014 boom and correction cycle. In it, I showed how if this boom and correction cycle equals the percentage drop of 2014, Bitcoin would bottom somewhere between $2000 and $4000. No matter what happens from here, it will be very interesting to watch how this correction unfolds.
I look at the price action of Bitcoin lately as a start of the bottoming process, again, I'm not saying the bottom has already been made, but just that this is a start of that process. In my opinion, at some point, we will see the price of Bitcoin transition from the downtrend and into an accumulation phase, just as it did during 2014 correction. On my chart, I show a support zone from about $6000 to $6500, Bitcoin has now bounced twice from that level. I also show a resistance zone around the $9000 level, which Bitcoin is now approaching. Could this be the start of the accumulation phase? Sure, I believe it could, we could see Bitcoin move sideways from here creating a channel between $6000 and $9000. Could Bitcoin still break below $6000 and create a bottom at a lower price? Sure it could. I know, I'm sorry, I wish I could tell you with 100% certainty that $6000 was the bottom and Bitcoin will only move higher fom here but I would rather be honest with you and just share what I believe are some of the possible scenarios.
So after all of that what is my outlook for cryptocurrencies? Long-term I remain bullish, my opinion is that this is just another boom and correction cycle just like Bitcoin has experienced in the past. I think this correction is just a healthy reset and after a period of accumulation (boring phase), Bitcoin along with other cryptocurrencies will enter another bull market. I have just started within the last week to make some small purchases of Bitcoin and several other cryptocurrencies (Bitcoin, Ethereum, Litecoin, Dash, Monero, NEO, OMG, UBIQ, CVC). My plan is to be patient because as I stated, I believe we are going to move into an accumultion phase at some point which will give me plenty of time to rebuild my positions.
I really appreciate you taking the time to read my opinions and I hope you all have a great rest of your weekend.
BigskyCrypto
Anyone with questions or comments can also email me at: info@bigskycrypto.com