On it's run up to 14k Bitcoin has followed several micro patterns that can be found within it previous price action history. I have laid out the 2017 parabolic rise above the chart to show how closely this trend has been following 2017. If you observe the 2017 parabolic rise to 20K you can see that at this point of the 2017 uptrend, there is a divergence in the current chart. Bitcoin's current run from it's breakout roughly around $8700 all the way to 14k was eerily similar to it 2017 push from $3k to $5k with a slight different characteristic observed in the current trend as a blow off top followed by lower high, lower low, lower high then a second bounce off support at around $9100. I see two possible scenarios that may determine the mid term price direction for Bitcoin delineated in the Green and Red price action which correlate to the trading patterns above and below the current chart. Due to the nature of the blow off top at 14k, I lean towards the trend in red as a more likely scenario heading into the halving which may provide a short rally which will sell the news at the halving date.Lets see how this plays out!!
Comment:
Bitcoin has taken a bit of a higher route to trade down to its current level yet we can see that the price and the chart in red are converging. The trading action leads me to believe that we will continue downward and eventually hitting my target!
Comment:
Well well well, look what we have here. We have hit the bottom range of my sell down target. If we continue to trade sideways, BTC may have one more down push before we reverse. A push down below $6500 would require me to sriously think about backing up the truck. Good luck trading!