Patterns and price action repeats itself over and over again in markets. Time and time again we see assets with their own specific price action characteristics repeating which can present us with fantastic opportunities to get into the market.
Here you see BTC price action (blue) in 2015 following the LTC (Litecoin) halving which led to a bull run that reached $20,000. The price action is strikingly similar to the current BTC price action after the 2019 LTC halving with one major difference: we have encountered an enormous unforeseen deflationary spike as a result of the Coronavirus pandemic which has led to a hefty drop in BTC price.
Just before this deflationary spike, BTC was following an upwards trend to the 10,500 mark which in visual terms matched almost precisely what happened in 2015 (check the comparison of price action). With the Federal Reserve flooding the markets with liquidity and massively increasing the circulation of dollars in the system to try and inflate our way out of this crisis, I find it hugely improbable that the markets will suffer any more drops of significance which leads me to believe that BTC will continue on its original path upwards. With the purchasing power of the USD set to fall off in light of the Fed's mass printing, this will push prices in BTC higher and with a shortage of the only other tangible and unprintable assets on earth (commodities [gold and silver]) it is my belief that considerable amounts of money will enter Bitcoin and the crypto space in general, therefore, price action will continue in its original path.
@transparent-fx, what do you feel will make price move down to the suggested area?
jakecarling41
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@jakecarling4406, @transparent-fx the reason I ask is because surely now macro economic factors will have considerably greater influence than support and resistance over the BTC price.
transparent-fx
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@jakecarling4406, this is usually the pattern, but the price action on the 4h will tell
Trading-Guru
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Love this idea!
jakecarling41
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@Trading-Guru, thanks mate! give it a share to spread the word... Moneys gonna be made here for sure.
Trading-Guru
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@jakecarling4406, Will do! The halving is something I haven't looked into much yet. But this was very inspiring