Hello fellow traders today i have a chart analysis that some of you have already thought of or seen. We have yet to see our bottom and while this bull rally has been pleasant for all who have been longing it, the bulls may be running out of steam. What's driving our rally is beyond me, possibly the trade war between the U.S. and China or manipulation due to the tether audit, no one knows, but i do know that we have one of our highest NVT sell signals that we have seen in a while, and it is indicating that we are currently in a bubble. The NVT signal has had 100% accuracy up until this date predicting drops and corrections of at least 50% and up to 68%. My target puts us back to 4k where i believe we will either bounce from or plunge into the abyss. The prolonged sell signal on NVT makes me cautious as whoever or whatever is causing this bull rally may have an agenda in mind that is not showing up in the charts.
As you can see I have drawn in a head and shoulders pattern and i believe it is possible that it will play out similar although i feel the right shoulder may be smaller in length before dropping, but also on the RSI it appears we have double topped, so unless the bulls are able to push the price up and go above $10k in the near term i do not believe that bulls are in for a painful correction of at least 50% relative to our recent top at $9100.
On the contrary, I could see that Bitcoin goes to $20k end of year or higher, but that would assume that this 86% decline has all along been a bear trap and we were never in a bear market, but that is unlikely imo.
If i left anything out please leave a comment and ill respond as fast as i can.
I hope you gained some insight from this and happy trading. This is not investment advice, these are just my opinions.
As you can see I have drawn in a head and shoulders pattern and i believe it is possible that it will play out similar although i feel the right shoulder may be smaller in length before dropping, but also on the RSI it appears we have double topped, so unless the bulls are able to push the price up and go above $10k in the near term i do not believe that bulls are in for a painful correction of at least 50% relative to our recent top at $9100.
On the contrary, I could see that Bitcoin goes to $20k end of year or higher, but that would assume that this 86% decline has all along been a bear trap and we were never in a bear market, but that is unlikely imo.
If i left anything out please leave a comment and ill respond as fast as i can.
I hope you gained some insight from this and happy trading. This is not investment advice, these are just my opinions.