We all got excited with the recent bitcoin rally to 5K level but where does this take us?
Two weeks ago, the Total Coin Marketcap was forming a continuation and it was at the brink of breaking the neckline at 140 Billion when we predicted a rally towards 180B upon breakout. We have also stated that once this happens, It could potentially send bitcoin to $5600 level.
Well as a result, we did broke the neckline and reached 160B, this is 20B short from our IHS target which also resulted in Bitcoin challenging 5K level but our target remains to be180B for total market cap and 5600 for Bitcoin . Question is, could we reach this level? considering bitcoin has corrected towards 4700 level and market cap at 150B.
When bitcoin reached 5000, a very important level for bitcoin , we did get enough to convince us that the recent rally was in did but while we resulted to a higher high, we printed a tricky, hidden divergence by comparing November 7 high of 6k to 5K high of today. We did got a higher but we made a lower high on the price.
This brings us to conclusion that Bitcoin will likely correct further, 4200 is a good level which will likely hold. Once we reach this level, it will likely bounce towards 5600 and even higher to 6000. A similar price action is to be expected from total market cap. We retest 140B then we bounce to test 180B or even higher.
That's it guys. I welcome your feedbacks.
This is just a guide, not a trading advise.
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-Your Poop Trader