The Bitcoin market has reached a juncture where it is about to explode. To which side, you might asked?
Well, the answer is very obvious if you look at my chart.
It is true that the bulls and bears have each failed the same number of times to initiate a successful breakout in the past. If you study the chart closely, however, you would notice that the bulls have actually covered more ground to the upside during their breakouts than the bears to the downside.
By applying the , we could see that each failed upside breakout in the past had fought hard against thick cloud or walls of resistance. The thickness of the cloud basically represents the selloff (short positions) at that given time.
For instance, the cloud was extremely thick during the breakout in May. Back then, the market majority was banking on Bitcoin to capitulate (as if 70% retracement wasn't enough) so naturally the selloffs or short positions peaked. But then, something happened! The bears failed to get price down below $5700 because of the huge demand at that level which upset the supply.
That was when the bulls pushed the Bitcoin price back up to $8500 in their attempt to breakout from the cloud in July. Even though they almost succeeded, we know that it didn't end well and that is because the cloud was still too thick at the time. However, notice that it was not as thick in July as it was in May? What does it mean? It means that the selloff pressure had reduced dramatically or in other words, the bears were beginning to lose faith in the capitulation.
Months passed and we saw the same process being repeated by both factions of the market where most of us started to pull nails out of chipboard with our teeth. Eventually, the trading range got narrowed down with higher lows and lower highs. You might argue that each side has gotten nowhere with the battle and that is where you are wrong. Why?
It is because not only have the bears lost ground to the downside, they are no longer interested in shorting Bitcoin as evident by the thinning cloud on the chart. Yes, the market majority has now shifted from being to on Bitcoin .
Did you also notice that the higher lows and lower highs have helped form a pattern that is about to breakout to the upside? That's right, my friend. If there is to be a successful upside breakout, the best time to do it would be in the next few days when the cloud is at its thinnest.
If an upside breakout does happen by this weekend, price would likely reach close to $10000 at lightning speed. As such, now would be your last chance to get on board Bitcoin if you ask me.
That’s it for today. I wish you good luck and happy trading!
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