To me, the magic of Bitcoin's graph over the past 8 years - most of its existence - is that it can be summed up by a single line, unveiling itself clearly in Logarithmic scale (*), and that I name here the historical trend line.
(*) On such a large time scale and with such percentages of Bitcoin price increase over these 8 years,
the LOG scale is obviously necessary for trend and cycle study.
This historical line is of such importance that it has:
- increased the price from 2011 to 2018
- led a sudden and powerful dump by yielding in November 2018
- rejected and paused the powerful bullrun underway when hit at $ 14k, in June 2019
Henceforth I expect two possible scenarios taking into account the strength of this historical trend line:
SCENARIO 1, THE SUPPORT FORCE BULLISH:
Worn by the new Cup & Handle drawn on my graph, the price can reach the ATH (All-Time High) again quickly.
From then on, he will be confronted with the double resistance of $ 20k and the historical trend line. But the price has already faced this resistance recently ($ 14k), it could eventually outperform it, helped by the result of the Handle of the Cup. But if the $ 20k were to be exceeded on the short term of my graph, imagine the importance of its signal Bullish! What the historical trend line would tell us is that a Bullrun like the one in 2017 could then occur for the same technical reason, with a target of about $ 300,000 in two years.
SCENARIO 2, THE BEARISH FORCE OF RESISTANCE:
A historic line of resistance such that the price would first rebound on the support of $ 6,000 before relaunching its Bullrun, which would therefore benefit from great flexibility because no longer worried by this resistance... until to $ 75,000 in 2021!
DISCLAIMER: This is only a frame of mind, which can not be an investment advice.
You are solely responsible for your investments, up to what you are willing to lose.
(*) On such a large time scale and with such percentages of Bitcoin price increase over these 8 years,
the LOG scale is obviously necessary for trend and cycle study.
This historical line is of such importance that it has:
- increased the price from 2011 to 2018
- led a sudden and powerful dump by yielding in November 2018
- rejected and paused the powerful bullrun underway when hit at $ 14k, in June 2019
Henceforth I expect two possible scenarios taking into account the strength of this historical trend line:
SCENARIO 1, THE SUPPORT FORCE BULLISH:
Worn by the new Cup & Handle drawn on my graph, the price can reach the ATH (All-Time High) again quickly.
From then on, he will be confronted with the double resistance of $ 20k and the historical trend line. But the price has already faced this resistance recently ($ 14k), it could eventually outperform it, helped by the result of the Handle of the Cup. But if the $ 20k were to be exceeded on the short term of my graph, imagine the importance of its signal Bullish! What the historical trend line would tell us is that a Bullrun like the one in 2017 could then occur for the same technical reason, with a target of about $ 300,000 in two years.
SCENARIO 2, THE BEARISH FORCE OF RESISTANCE:
A historic line of resistance such that the price would first rebound on the support of $ 6,000 before relaunching its Bullrun, which would therefore benefit from great flexibility because no longer worried by this resistance... until to $ 75,000 in 2021!
DISCLAIMER: This is only a frame of mind, which can not be an investment advice.
You are solely responsible for your investments, up to what you are willing to lose.
