Despite many technical analysts being in denial and focusing on short-term bullish
indicators such as the inverse heads and shoulders and W's, the overall pattern is clear. Bitcoin
will be bullish
overall in 2018, but it must first truly finish its retracement, and enter a period of low volatility
at its true rock bottom before the full recovery up to 20k can begin. $6000 is Bitcoin's strongest level of support, and after that point in Fall 2017, it recieved a massive surge of un-tested growth before correcting. We have had a run-up to the 10-11.8k, though we cannot rule out the possibility of an all-too-common denial phase in the stock market in which people believe it won't get any lower and they buy in to prop up the price expecting a bull-run shortly. As you see on the chart, we've only seen bear flags. Recently, I had expected BTC
to form a rising wedge
but it broke below that much sooner and its looking more like a bear-flag
now which is no less bearish
. The fact is that we can't unsee the $6500-7000 mark that it dropped down to. If you're a daytrader, I can see merit in buying the low of a range. However, for everyone else, either wait for a cheaper Bitcoin
or until Bitcoin
is actually on a bull run.
Edit: There was a mistake in my drawing. The lower small yellow wedge
line was accidentally moved higher than it should have been. The angle should have been wider to touch the 9.3k mark at Feb 26.