Since we just had our golden cross a few days ago I decided today to zoom way out to see what is happening for BTC in the long term. In the beginning of February I saw what seemed to be the beginning of a formation and it looks like it is coming to fruition. Looking at the chart we can see that the cup & handle is indeed a real possibility. I had made some alterations to the chart to flow with any changes towards this idea; that is if the neckline moves any higher up.
The question is, will BTC move to possible targets or plummet as many declare? What evidence is there that supports this idea? Well the best I can do is point out the facts such as; there is a lot of support at the 5k level along with a growing world wide interest in google searches as of late. We also know that Binance Research Team declared the bottom is behind us now. We just had a golden cross over and the bears have lost interest in shorting the market. The chart pattern speaks for itself as does the 2 week snapshot linked above. However Cryptos don't follow the rules and could crash at any moment going against any top analysts prediction. The big moves seem to happen when the shorts and longs hit a 60/40 ratio. That is to say, when the herd goes 60% long there will be a short and vice versa. Looking at the 5 year chart of the shorts and longs according to that ratio does hold some validity to the theory when you look at the price action and compare it to the 60/40 ratio it is shockingly true when prices become overbought and oversold on a long term chart the surges are powerful.
Details on the chart.
This is my viewpoint and my opinion. I am not giving advice but only sharing what I see. Do not enter a trade on my TA but do your own homework.
Cryptocurrency is volatile and very risky. Never invest what you can't afford to lose and always educate yourself and continue to do so when making any kind of investment.
If you find this information helpful, then please hit the like button. Your support is appreciated. Thank you!
CYA on the next one...until then, the trend is your friend. Buying on the dip and selling on the hype.