What Will Happen to Bitcoin from The ChartPattern Point of View?
Dear friends, traders, and investor, I am writing today to ask a very simple question and I want a serious discussion. What will happen to Bitcoin in February from the chart pattern point of view?
With all the uncertainty surrounding the Bitcoin price, there are some optimistic signals in the patterns that are in the making in the short term.
Before going further, we have to agree that for the Bitcoin price to stabilizes we need to reach a point where the support level is around the 9000$. Psychologically it would be good for investors since we went to the next Fibonacci level. Nowadays, we are in a Fibonacci level where our support is around 6000$ and the 9000$ is our resistance. A sudden rise in Bitcoin price is not a real solution, because all traders are seeing the 9000$ price as a resistance, and short selling will go massive when Bitcoin reaches 9000$ without a serious price action. I have identified three possible scenarios for a serious price action to happen, according to chart patterns forming in 2 hours candlestick charts:
1- We can assume that Bitcoin is doing a double top and will fall to do the second bottom of a bigger double bottom (Ghost Charted in Yellow). If this happens, bitcoin will rise steadily the size of both patterns combined in a short period time, to make a solid position above 9000$.
2- We can assume that Bitcoin is doing the second top of a triple top (Ghost charted in blue), which will have the same effect of the previous assumption. However it will take a longer period of time to form the third top and fall to form the second bottom then rises the whole size of the two patterns combined and stabilizes above 9000$.
3- We can assume that Bitcoin is in a big descending triangle (Ghost charted in purple), and has formed a solid support around 7800$, and will do smaller peaks in the future, to breakout 10 days from now and reach a solid position above 9000$.
This analysis is only a hypothesis, based on assumptions and subjective observations. You need to do more technical analysis, to make sure it is true, if you want to make investment decisions, whether opening short positions thinking it will go down, or long positions thinking it will rise fast.
Thank you for reading my humble analysis, follow me on twitter @iwahby and on here as Digitinvestor. Please feel free to ask questions, leave comments and correct my assumptions, this idea is for discussing and not for lecturing.
Sincerely yours Digitinvestor
With all the uncertainty surrounding the Bitcoin price, there are some optimistic signals in the patterns that are in the making in the short term.
Before going further, we have to agree that for the Bitcoin price to stabilizes we need to reach a point where the support level is around the 9000$. Psychologically it would be good for investors since we went to the next Fibonacci level. Nowadays, we are in a Fibonacci level where our support is around 6000$ and the 9000$ is our resistance. A sudden rise in Bitcoin price is not a real solution, because all traders are seeing the 9000$ price as a resistance, and short selling will go massive when Bitcoin reaches 9000$ without a serious price action. I have identified three possible scenarios for a serious price action to happen, according to chart patterns forming in 2 hours candlestick charts:
1- We can assume that Bitcoin is doing a double top and will fall to do the second bottom of a bigger double bottom (Ghost Charted in Yellow). If this happens, bitcoin will rise steadily the size of both patterns combined in a short period time, to make a solid position above 9000$.
2- We can assume that Bitcoin is doing the second top of a triple top (Ghost charted in blue), which will have the same effect of the previous assumption. However it will take a longer period of time to form the third top and fall to form the second bottom then rises the whole size of the two patterns combined and stabilizes above 9000$.
3- We can assume that Bitcoin is in a big descending triangle (Ghost charted in purple), and has formed a solid support around 7800$, and will do smaller peaks in the future, to breakout 10 days from now and reach a solid position above 9000$.
This analysis is only a hypothesis, based on assumptions and subjective observations. You need to do more technical analysis, to make sure it is true, if you want to make investment decisions, whether opening short positions thinking it will go down, or long positions thinking it will rise fast.
Thank you for reading my humble analysis, follow me on twitter @iwahby and on here as Digitinvestor. Please feel free to ask questions, leave comments and correct my assumptions, this idea is for discussing and not for lecturing.
Sincerely yours Digitinvestor