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.
NVT doesn't work anymore! #! Liquid and Lighting Sidechains !!! And RSI bouncing off 50 is Bullish! It's holding tight..
CryptoJosh5555
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@BitFink, While i don't agree that NVT no longer works, i do briefly remember during october and november before or during our fall after NVT flashed a sell signal people mentioning a exponential growth capacity of lightning network. We had lightning network during the november/december 2018, so i don't believe sidechains negates NVT 100% accuracy up until this point. It has never throughout bitcoins history been wrong, hard to argue that point and as far as bouncing off the 50 rsi, i think we are consolidating before going lower and the RSI is pointing downwards as im writing this to you.
ENIGMA1440
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@jcmoore09, Do this... Go to Bitstamps BTC chart. Put it on Monthly Candles and apply NVT and ell me NVT says the bottom isn't in...
CryptoJosh5555
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@BitFink, NVT only works for the Daily. It is not meant to be used for anything higher or lower in timeframe. Willy Woo has said this.
ENIGMA1440
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@jcmoore09, Willy Woo has also said that NVT need to be recalibrated and he's not sure it can be used accurately anymore not to mention has also called that bottom is in
CryptoJosh5555
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@BitFink, 100% accuracy. We will soon see in the coming months.
ENIGMA1440
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@jcmoore09, Not looking so good for the short side this a.m. Bitty don't give a damn about TA sometimes... The power of 100% TRUE LIMITED SUPPLY ON A GLOBAL SCALE... Nothing like this in the history of investing...
CryptoStef
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That's not a head and shoulder...
CryptoJosh5555
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@stefangel90, I didn't say it was but am assuming the bitcoin pattern will develop into one, but thanks.