Anyone who has read some of my previous comments will know that I was skeptical that what were seeing was a breakout triangle pattern forming. Although it did appears as if major consolidation was occurring, there was still a undeniable pattern of lower highs and lower lows which, in my opinion, is a much stronger indicator of markets sentiment than pennants and triangles, which are unpredictable at best.
As of now, I am moderately bullish, but I am waiting to see if we hit a true mid time-frame bottom, or if we are going to continue the previous process of lower highs and lower lows. One thing that makes me believe the former scenario is correct is the large bottom wick on Jan 20 at 16:00 on the four hour chart. Not only does it show a massive retracement from a low of ~28700, but its also the largest 4 hour trading volume since Jan 4th. What this tell me is that there are enough people who still believe that BTC has sufficient upside from 28-30k that they are willing to buy in hoards. Does this mean we will hit a new ATH?... It's hard to say, but I do think there is some upward movement at least in the short term.
BTC is highly speculative and the market is driven by sentiment and whales which, oddly enough, makes TA much more effective.
As of now, I am moderately bullish, but I am waiting to see if we hit a true mid time-frame bottom, or if we are going to continue the previous process of lower highs and lower lows. One thing that makes me believe the former scenario is correct is the large bottom wick on Jan 20 at 16:00 on the four hour chart. Not only does it show a massive retracement from a low of ~28700, but its also the largest 4 hour trading volume since Jan 4th. What this tell me is that there are enough people who still believe that BTC has sufficient upside from 28-30k that they are willing to buy in hoards. Does this mean we will hit a new ATH?... It's hard to say, but I do think there is some upward movement at least in the short term.
BTC is highly speculative and the market is driven by sentiment and whales which, oddly enough, makes TA much more effective.