Bitcoin appears to be at a critical juncture. Up, Down, Sideways? Those are the questions. Many believe, or hope, Bitcoin is preparing for the next springboard up above the top of the resistance channel. (Top Pink Line) Of course from the beginning of this correction / decline this is the 3rd major attempt that has been rejected so far. All previous rejections were followed with more massive downside price action. From the high to now the price has been literally cut by more than half only regaining a few thousand off the last bounce of the lower channel line. (not visible on current chart).
What I currently see is the following:
1. The price was rejected again off the top channel trend line
2. The price has fallen and remains under the 50 and 100 Daily EMA
3. The price is currently trading under the $10K line again
4. The price is currently forging a triangle that if the ABCDE patterns plays out should break to the downside.
Prediction:
If this triangle breaks to the downside BTC could trade below $9K, perhaps as low as $8,200 area in the near term. If support continues to fail, even lower as time goes on.
Disclaimer:
I am a long term fan of Bitcoin. I was buying them before most people even knew what they were. I will hold some for long term investment / profit while trading others for short term gains. That's my plan and I'm sticking to it :o)
What I currently see is the following:
1. The price was rejected again off the top channel trend line
2. The price has fallen and remains under the 50 and 100 Daily EMA
3. The price is currently trading under the $10K line again
4. The price is currently forging a triangle that if the ABCDE patterns plays out should break to the downside.
Prediction:
If this triangle breaks to the downside BTC could trade below $9K, perhaps as low as $8,200 area in the near term. If support continues to fail, even lower as time goes on.
Disclaimer:
I am a long term fan of Bitcoin. I was buying them before most people even knew what they were. I will hold some for long term investment / profit while trading others for short term gains. That's my plan and I'm sticking to it :o)
Comment:
Looking at the current chart a case can also be made for a topping head and shoulders pattern. The head is A and the right shoulder is the B C D part of the triangle.
Comment:
The bottom of D could be shifted to the right a bit, but the triangle pattern is still in effect as previously posted. It should resolve by the beginning of next week.