Glad to be back and better again after being constrained by a little health challenge over the past week. Though still on a recovery mood, but i should be fully fit before weekend.
Last weeks chart, I was still leaning bullish that we had some further upward price action to come after a bullish correction from the $6800 resistance area.
We have seen a small leg down since then but otherwise, it's been pretty range bound between low $6250's and $6600 where the majority of the bitcoin's price action has been over the past several months.
On the 4 hour, we are trading in the historic consolidation zone we have been for months now.
The $6000, $6250, $6450 and $6600 zones have been the point of interest over the past several months.
Right from the bottom of $5775 in June 2018, we have been consistently seeing series of higher lows, but yet to see a higher high.
However, with the recent consolidation and squeeze of price action within the symetric triangle, we should see a break to the upside in this quarter 4 of 2018.....Here is why:
=> Historically between Oct through Dec of each year, price is often very strong and we've seen this rally in Q4 of 2016 and 2017.
=> Bitcoin's sentiment as we speak is overly bearish accross the crypto space. According to google trend chart, Bitcoin's search is at ATL, meaning the public has lost interest in bitcoin and this in itself is a positive signal of a trend reversal
=> The squeeze in price action and indicators in the last one month has lead to a bullish divergence on RSI and MACD, moreover, the depleting volume within this period is also an indication of an imminent breakout to the upside.
=> The Fundamentals are getting stronger and stronger by the day as more and more increased interest is seen among institutions with continuous effort being put together by the big players to lay proper foundation that will help bring cryptocurrencies to main stream.
I did love to see a retrace to the $6450 area to cool off RSI completely before a breakout.
A potential break to the upside may lead to a 30%-40% end of the year rally, taking price to between $8500-$9500 area to give us our first higher high in 11 months IMO.
I did expect to see a correction down to the previous resistance now turned support (by then) at $8500, $8000-$7800, $7400, and maximum retrace to $6800 where i did expect that support to hold for a continuation of the uptrend.
Finally, keep in mind that after this Q4 rally and correction, if the $6800 support fails, that could cause another round of panic that could lead price down to a final bottom ($5k-$4k IMO) in Jan 2019 just as we saw in the 2013/2014 bear market.
Last weeks chart, I was still leaning bullish that we had some further upward price action to come after a bullish correction from the $6800 resistance area.
We have seen a small leg down since then but otherwise, it's been pretty range bound between low $6250's and $6600 where the majority of the bitcoin's price action has been over the past several months.
On the 4 hour, we are trading in the historic consolidation zone we have been for months now.
The $6000, $6250, $6450 and $6600 zones have been the point of interest over the past several months.
Right from the bottom of $5775 in June 2018, we have been consistently seeing series of higher lows, but yet to see a higher high.
However, with the recent consolidation and squeeze of price action within the symetric triangle, we should see a break to the upside in this quarter 4 of 2018.....Here is why:
=> Historically between Oct through Dec of each year, price is often very strong and we've seen this rally in Q4 of 2016 and 2017.
=> Bitcoin's sentiment as we speak is overly bearish accross the crypto space. According to google trend chart, Bitcoin's search is at ATL, meaning the public has lost interest in bitcoin and this in itself is a positive signal of a trend reversal
=> The squeeze in price action and indicators in the last one month has lead to a bullish divergence on RSI and MACD, moreover, the depleting volume within this period is also an indication of an imminent breakout to the upside.
=> The Fundamentals are getting stronger and stronger by the day as more and more increased interest is seen among institutions with continuous effort being put together by the big players to lay proper foundation that will help bring cryptocurrencies to main stream.
I did love to see a retrace to the $6450 area to cool off RSI completely before a breakout.
A potential break to the upside may lead to a 30%-40% end of the year rally, taking price to between $8500-$9500 area to give us our first higher high in 11 months IMO.
I did expect to see a correction down to the previous resistance now turned support (by then) at $8500, $8000-$7800, $7400, and maximum retrace to $6800 where i did expect that support to hold for a continuation of the uptrend.
Finally, keep in mind that after this Q4 rally and correction, if the $6800 support fails, that could cause another round of panic that could lead price down to a final bottom ($5k-$4k IMO) in Jan 2019 just as we saw in the 2013/2014 bear market.
