Currently, there are a lot of people giving up on Bitcoin, but its not over yet, and here are my reasons.
1.) There was a reversal pattern that took 2 months to develop and in accordance to our rules as traders, we must note that the longer and more volatile a pattern, the more explosive an outbreak is and there are higher chances of it hitting its price objective. The price objective of the inverse head and shoulders is still 7800-7900 and these have an extremely low failure rate. In addition, it took two full months, and it broke through an important trendline. Now I am not saying that bitcoin cannot go down, it most certainly can. But this pause is only several days in comparison to the inverse head and shoulders and people are calling it quits.
2.) This pattern is jacked up so it is hard to tell what the fuck it is, but it is most likely a bull flag and my reason for calling it a bull flag is that it follows the principles of a continuation pattern, First, It occurred on the midpoint of the price move literally, at the midpoint and it has been fluctuating slightly above that mid point which means that there is still bullish momentum. Second, the volume profile has been significantly less than that of the pole of this flag. Third, the bodies of the candle are being pushed with the flag limits, which means there is some aggressive fighting.
ITs not over yet, and the fighting is just beginning.
Key Points:
1.) A lot of people stopped being fucking traders and stopped looking at the charts and reading the charts with an objective lens.
2.) Currently, it seems more like a bull flag under the two very important trendlines. A successful cross against these trendlines would mean that the down trend is most likely over and that we double bottomed. The first trendline is light blue, it was the previous support of the symmetrical triangle, the purple is the resistance of the symmetrical triangle. I suspect that we could either complete the continuation pattern and move up to hit the price objective of the inverse head and shoulders (The green line), bitcoin can also continue moving sideways (the yellow squiggly line) and get rejected by the purple line of resistance or break the purple line of resistance denoted by the violet lines, one point up resembling a break and one point down resembling a rejection, the price can also go down to retest the neckline roughly at 6800 (I doubt it will even make a move down, but if it does there are several stops that need to be made before reaching the neckline. I drew the possibilities for you guys like a kid with crayons.
Notes: Bitcoin can break the trendline on sideways movement, and it would mean that it has become trendless.
Several Analyses Ago:
1.) There was a reversal pattern that took 2 months to develop and in accordance to our rules as traders, we must note that the longer and more volatile a pattern, the more explosive an outbreak is and there are higher chances of it hitting its price objective. The price objective of the inverse head and shoulders is still 7800-7900 and these have an extremely low failure rate. In addition, it took two full months, and it broke through an important trendline. Now I am not saying that bitcoin cannot go down, it most certainly can. But this pause is only several days in comparison to the inverse head and shoulders and people are calling it quits.
2.) This pattern is jacked up so it is hard to tell what the fuck it is, but it is most likely a bull flag and my reason for calling it a bull flag is that it follows the principles of a continuation pattern, First, It occurred on the midpoint of the price move literally, at the midpoint and it has been fluctuating slightly above that mid point which means that there is still bullish momentum. Second, the volume profile has been significantly less than that of the pole of this flag. Third, the bodies of the candle are being pushed with the flag limits, which means there is some aggressive fighting.
ITs not over yet, and the fighting is just beginning.
Key Points:
1.) A lot of people stopped being fucking traders and stopped looking at the charts and reading the charts with an objective lens.
2.) Currently, it seems more like a bull flag under the two very important trendlines. A successful cross against these trendlines would mean that the down trend is most likely over and that we double bottomed. The first trendline is light blue, it was the previous support of the symmetrical triangle, the purple is the resistance of the symmetrical triangle. I suspect that we could either complete the continuation pattern and move up to hit the price objective of the inverse head and shoulders (The green line), bitcoin can also continue moving sideways (the yellow squiggly line) and get rejected by the purple line of resistance or break the purple line of resistance denoted by the violet lines, one point up resembling a break and one point down resembling a rejection, the price can also go down to retest the neckline roughly at 6800 (I doubt it will even make a move down, but if it does there are several stops that need to be made before reaching the neckline. I drew the possibilities for you guys like a kid with crayons.
Notes: Bitcoin can break the trendline on sideways movement, and it would mean that it has become trendless.
Several Analyses Ago:
Comment:
Previous Analysis:
Comment:
So bitcoin's price is now living within the symmetrical triangle it fell out of, a break of the purple triangle is all that the bulls need to reverse this down trend.
Comment:
It looks like the bulls might want to test the trendline soon. Its unlikely that this pennant will hit its price objective but it looks like the bulls want to push and test the purple trendline really soon.
Comment:
If Bitcoin can break the 8000 barrier, it will most likely move to the mid level 8000, it also looks like the bears have capitulated and the field is currently controlled by the bulls.