deong93

MULTI MONTH CONSOLIDATION LIKELY NOW FORMING ON BITCOIN

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
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It appears as if Bitcoin wants to cool down in the current range between 13 800 and 9600. As can be seen above, two possible scenarios if Bitcoin consolidates in this range.

1. The first scenario, and in my opinion the most likely one, is that Bitcoin forms a descending triangle over a few months with lower highs being created along the way and a base at the 9600 lows ( this can be seen above as the PINK triangle with the red as a VERY rough price projection. In this scenario Bitcoin will also be finding a base on the 147 day ema (the orange line). The 147 day ema , also more commonly the 21 weekly ema , is a important area for pullbacks during a Bitcoin bull market.

2. The second scenario is that bitcoin creates a ascending triangle with higher lows being created and a ceiling at the 13 880 level we saw a few weeks ago ( this is the BLUE triangle with green price projection). In this scenario it is also expected that it will be a multi month consolidation with a breakout 3 to 4 months away. This is less likely as it would mean that Bitcoin probably does not test the 147 ema before continuing higher.


A clue will be given soon as to which scenario is more likely as Bitcoin moves down towards the 10 300 - 10 500 range, which should hold as support in scenario 2, and will break in case of scenario 1.

I do believe that both scenarios does eventually break to the up side and continues the bull market. Even though a descending triangle typically breaks down, in this case it would be more likely that it breaks up. But do not make trades based on opinion, follow the charts