After the short squeeze we all witnessed yesterday, I've come to a new conclusion on how I see BTC 2.56% playing out for the next 3-5 months. I will warn you, it is boring. Like major boring...So take some time, drink some tea, have a beer, sleep in, enjoy your summer, do not stress. Just position yourself for the long-haul and wait for the boom...
So my new thinking is this. We will get less and more sideways movement with squeezes in between. Next rejection at dashed blue line ($7750) will result in a test at the very long-term support of $5.5k. Most transactions will occur off the major exchanges in order for the squeezes to continue. Eventually we will start to see a cup formation happen. The major indication for a cup formation will be , BUT it won't be on exchanges. We need to start watching the blockchain to monitor . Once the various NEW players have substantial bags, we will start to hear the news. This news will be in the realm of approval, brokerage services adding BTC 2.56% , aka anything that tells the public institutions approve.
The angles with degrees shown within the pattern show the progression as well. The steepness is declining. After price hit support the action has lessened by 10 degrees each time. When price moved from the resistance the angle changed by 17 or 18 degrees. So using this continuation we arrive at about $7750 and then $5500. yawn...
However, to prepare yourself for the next bull run we need to look at ...and looking at of BTC 2.56% being moved around will help with this. If anybody has a good way to measure this, please PM me.
Enjoy the weekend!
DA "bear" BULL
If iH&S plays out $7.8k is in the cards. I placed a darker line below this price point, you can see there was previous resistance here. This would be a more conservative exit.
Keep in mind this can always flip quick, which is why I'm more of a wait and see. It is a long way down to $5.5k and will have plenty of time to jump on the ride.
I'd say we were just about spot on for time and price...
Keep in mind that the amount of wallets actively trading is decreasing (consolidating) even though volume is climbing. The ETF is very bullish news, but I still think we revisit the lows. Expect the news to talk about the SEC delaying their response and spinning it as BTC doom and gloom. An ETF will happen. The CBOE is providing insurance to their investors, which will limit the risk that the SEC has continually been discussing. The delayed response is not the CBOE, butone of the other 5 ETF proposals that are out there. I will update the time projection for the low if price enters the triangle again.
Stay tuned for my update on my Gold BTC overlay chart...I have something very interesting to share.
Also, here is some MACD analysis. Based on previous instances we can expect a dip here before moving up...just note history does not guarantee future outcomes! Take it easy.
BTC has several important resistance/supports lining up. We have the blue dashed line, looking at the chart above we can see the long-term significance. We have the white line going horizontal that is just above a high volume node and has proved to be important as the price acted as support to move towards $7k+ levels. Additionally, we have the white dashed support of the current ascending wedge formation. Using this style we can view two of the more popular trading methods (trading based on volume nodes/supports and chart patterns) and how they join. This also helps us figure out the potential timeline as to when it might happen.
ALSO, go use your Ichi clouds and see where your Senkou Span/Cloud starts...should be in the same area if you adjusted your cloud settings to crypto friendly times. I bring this up because many people trade using these methods, so if you know what the average trader is using and can match up a point in time where several methods join...you have a great opportunity to make a profit.
One last point, when we jumped out of the blue hashed triangle, it was less than 5%...bearish. It is a failed breakout meaning there is a high chance of price reversal. So let's watch what happens here at $6740. My money is on a little bounce followed by some fast price action. When that happens, use the long-term perspective shown above. Good luck!
Takeaway - "Over the last 24 hours, bitcoin has rebounded by around 3.5 percent, but the recovery of the market was not triggered by the rise in bitcoin’s value, but rather by the inflation of digital asset prices by Bithumb"