BTC is known to disobey technical analysis such as rising wedges breaking up. On many occasions TA was clear as day and the targets were sure, but bitcoin did a U turn and messed everything up.
Why? Usually there is a subtle hint.
Early in September I noticed a huge head and shoulders forming. It's measured move was 4k. The head and shoulders was part of an ascending triangle and the measure move of that is the same, 4k.
Then bitcoin broke down from the ascending triangle but it didn't drop to 4k.
Manipulation? maybe. But here is my technical explanation of what happened. Bitcoin is going to retest the triangle at 12.5k, after it will drop to 4k.
The daily RSI supports the theory of 12.5k then 4k. The RSI was in a falling wedge, broke out, retested it, shot up and now is forming a bull flag, meaning that there will be a strong upward move soon of equal length.
I believe that the price action will form a very big bearish divergence when it reaches 12.5k, which would precipitate the big drop down.
What bothers me in this idea is the timing. BTC must pump to 12.5k this month in orde to retest the triangle. I find this too early. If BTC pumps to 12.5k this month, it will be likely it will pump further maybe to 20k.
below is a similar idea, but using gann fans. And the original Head and shoulders idea in august.
Why? Usually there is a subtle hint.
Early in September I noticed a huge head and shoulders forming. It's measured move was 4k. The head and shoulders was part of an ascending triangle and the measure move of that is the same, 4k.
Then bitcoin broke down from the ascending triangle but it didn't drop to 4k.
Manipulation? maybe. But here is my technical explanation of what happened. Bitcoin is going to retest the triangle at 12.5k, after it will drop to 4k.
The daily RSI supports the theory of 12.5k then 4k. The RSI was in a falling wedge, broke out, retested it, shot up and now is forming a bull flag, meaning that there will be a strong upward move soon of equal length.
I believe that the price action will form a very big bearish divergence when it reaches 12.5k, which would precipitate the big drop down.
What bothers me in this idea is the timing. BTC must pump to 12.5k this month in orde to retest the triangle. I find this too early. If BTC pumps to 12.5k this month, it will be likely it will pump further maybe to 20k.
below is a similar idea, but using gann fans. And the original Head and shoulders idea in august.
