Three possible scenario for bitcoin:
1. Form a symmetrical triangle pattern, break that pattern with a high volume, and make a new all time high
2. Form a bear flag pattern and go to the 9000 resistance and pullback
3. Break the 9000 resistance and a potential downtrend for bitcoin
For scenario 1, we must look at the MACD. If the macd line crosses the signal line we could see an upswing and bitcoin will test the top triangle trend line. If it breaks the top triangle trend line with a high volume we could see a new all time high for bitcoin.
For scenario 2, as I mentioned before bitcoin creates a bear flag pattern and will get a resistance in the 9000 level. If we hold that 9000 level we could see a pullback and bitcoin is still in an uptrend.
For scenario 3, if bitcoin falls below the 9000 level which is an important resistance as i mentioned before because it is near the 21 EMA (In a bull market bitcoin always bounce up when it hits the 21 EMA) it will be a bad sign for bitcoin. It could be the end of the bull market for bitcoin and the beginning of a downtrend for bitcoin.
1. Form a symmetrical triangle pattern, break that pattern with a high volume, and make a new all time high
2. Form a bear flag pattern and go to the 9000 resistance and pullback
3. Break the 9000 resistance and a potential downtrend for bitcoin
For scenario 1, we must look at the MACD. If the macd line crosses the signal line we could see an upswing and bitcoin will test the top triangle trend line. If it breaks the top triangle trend line with a high volume we could see a new all time high for bitcoin.
For scenario 2, as I mentioned before bitcoin creates a bear flag pattern and will get a resistance in the 9000 level. If we hold that 9000 level we could see a pullback and bitcoin is still in an uptrend.
For scenario 3, if bitcoin falls below the 9000 level which is an important resistance as i mentioned before because it is near the 21 EMA (In a bull market bitcoin always bounce up when it hits the 21 EMA) it will be a bad sign for bitcoin. It could be the end of the bull market for bitcoin and the beginning of a downtrend for bitcoin.
