TradingShot
Long

BITCOIN bounced on the 2 year bearish trend-line! Rally ahead?

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
In my opinion Bitcoin is on important cross-roads. As you see on the current 1D chart, the price just made a technical touch (and is currently rebounding) on the 2+ year bearish trend-line (seen in blue) that has been holding since the end of the previous Bull Cycle (December 2017 All Time High) and which recently broke (July 2020) upwards. Typically such re-tests and bounces on former bearish trend-lines are a strong sign of buyer accumulation.

The perfect and most recent example is seen in late June 2020 when BTC made multiple touches and finally rebounded on the 1 year bearish trend-line (seen in black dashed) that has been holding since the June 2019 High. That re-test and rebound served as a stepping stone and paved the way to the late July rally and break-out above the 2 year bearish trend-line.

Also notice how the RSI (1D time-frame as mentioned) made also a rebound on the multi-year Buy/ Support Zone . This has always been a strong buy indicator on BTCUSD and has only broken two times, 1) during the November/ Dec 2019 Bottom of the Bear Cycle (naturally and was very much expected) and 2) the COVID stock market fueled collapse (unforeseen macro event). Additionally see how the 1D MA200 is supporting since April.

So the question of the current study is obvious. Can this re-test/ rebound on the 2 year trend-line serve as a stepping stone for an even bigger rally? Feel free to share your work and let me know in the comments section!

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P.S. Keep in mind that even greater buy opportunities exist on other crypto coins and at the time being NWCUSDT is my favorite:




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Comments

Excellent observation Tradingshot. Yes, indeed, BTC bounced off the logarithmic resistance line, now turned support.
Every time it did that in the past, the new bull cycle started. It's looking good.
+15 Reply
TradingShot FlaviusTodorius67
@FlaviusTodorius67, Always a pleasure exchanging perspectives with you Flavius!
+1 Reply
RocketBomb FlaviusTodorius67
+1 Reply
TradingShot RocketBomb
@RocketBomb, Thanks for sharing RB.
Reply
gbesen FlaviusTodorius67
@FlaviusTodorius67, why logarithmic and not the otherwise?

+2 Reply
@gbesen, What would be the catalyst for the move back to $7000?
Reply
gbesen TradingShot
@TradingShot, q1's are lower historically, but who knows :)
Reply
gbesen TradingShot
@TradingShot, and maybe the vaccine :)
Reply
Thank you for explaining what could happen. In the future that no one knows.
Bitcoins is just another instrument of speculation for small and big institutions and little guys like us. It’s not money ,it’s nothing ,at this stage of development . Will it survive? No one knows. But one thing I know for sure- big institutions who control all the money don’t like uncontrolled competition. And the only way to control this is to kill it or buy it and than kill it.
Now it’s big chance that bitcoins going to be at 3000 level. Sell at 10650 add at 10750 added at 10850, and if it will go higher I will sell more.
It’s a fake rally of a fake assets. Madness of the crowd. Like that book.
+4 Reply
TradingShot Forexblade
@Forexblade, I am not against what you say but I choose to trust the long-term cyclical patterns. I have heard the exact same pessimism 4 years ago.
+4 Reply
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