Bitcoin Weekly Update "Physics and Compound Fulcrums"
Welcome Back!
Today's post will include my thoughts as to where Bitcoins headed and a look at the current market cap moving forward.
Let's get right into this!
Taking a look at Bitcoin on the daily, it's apparent that were coming to a head in this current structure.
Whether we break up or down is yet to be determined, but this post will cover both perspectives so you can have somewhat of a blueprint to follow.
Prices are currently at strong descending resistance which from past price history has proven to be an impenetrable barrier.
Until a proven breakout occurs there really is no reason to think this market is going to flip bullish.
A break on the upside would need significant volume and a very impulsive move upward to the likes in which we have yet to see this bear market...
There are two patterns i'm noticing which ill get into detail further down this post, but for now it's important to look at Bitcoin from a very basic approach.
Although we have yet to definitively break $6k we continue to paint lower highs which is the textbook definition of a bearish trend. Is it possible we break bullish? Of course, but it's not as likely.
There is a theory in markets that state, "The more reactions at a given level the weaker that level becomes." In this case we have support at $6k which price has bounced from on numerous occasions. A bearish break of this would signal a prolonged bear market due to the fact the more times price reacts to this level the stronger that resistance could/would be.
Let's dive deeper into this and show y'all what i'm expecting moving forward!
Today's post will include my thoughts as to where Bitcoins headed and a look at the current market cap moving forward.
Let's get right into this!
Taking a look at Bitcoin on the daily, it's apparent that were coming to a head in this current structure.
Whether we break up or down is yet to be determined, but this post will cover both perspectives so you can have somewhat of a blueprint to follow.
Prices are currently at strong descending resistance which from past price history has proven to be an impenetrable barrier.
Until a proven breakout occurs there really is no reason to think this market is going to flip bullish.
A break on the upside would need significant volume and a very impulsive move upward to the likes in which we have yet to see this bear market...
There are two patterns i'm noticing which ill get into detail further down this post, but for now it's important to look at Bitcoin from a very basic approach.
Although we have yet to definitively break $6k we continue to paint lower highs which is the textbook definition of a bearish trend. Is it possible we break bullish? Of course, but it's not as likely.
There is a theory in markets that state, "The more reactions at a given level the weaker that level becomes." In this case we have support at $6k which price has bounced from on numerous occasions. A bearish break of this would signal a prolonged bear market due to the fact the more times price reacts to this level the stronger that resistance could/would be.
Let's dive deeper into this and show y'all what i'm expecting moving forward!
Comment:
Comment:
First off, let's take a look at the Compound Fulcrum forming in BTC.
Now, normally Head&Shoulder formations are a trend reversal pattern but in this case the opposite is true. Technically speaking, this cant be a true Head&Shoulder because it's forming inside of another pattern(Falling Wedge) Compound Fulcrums are a rare Bullish pattern that are very impulsive in nature and it's a possibility this has a major break on the upside.
Now, normally Head&Shoulder formations are a trend reversal pattern but in this case the opposite is true. Technically speaking, this cant be a true Head&Shoulder because it's forming inside of another pattern(Falling Wedge) Compound Fulcrums are a rare Bullish pattern that are very impulsive in nature and it's a possibility this has a major break on the upside.
Comment:
Comment:
Although rare, Crypto Markets are 24/7 and have much more time to accumulate than conventional markets do. What we used to, "rarely" see now has the probabilites to happen much more freqeuent such as the Compound Fulcrum. This is one that happened last April before Bitcoin impulsed back on the upside with this $1,200 daily candle. Notice the similarities of the two patterns. It could be that we are seeing another play out just like last time...
Comment:
Comment:
A bull break should be impulsive enough to send us to $10k before we have a significant pullback to support.
Comment:
Comment:
A rejection at resistance would not be good, and i would expect it to cause Bitcoin to break support at $6k and fall to $4,800-$5,200. This green box is where my buy ladder will be casted.
Comment:
Comment:
Total Market Cap has been retracing in this Falling Wedge formation and it looks as if were coming to the apex of this pattern.
Comment:
Comment:
On the shorter TF it looks as if we could be forming a Head&Shoulder reversal but we wont know until the current move plays out. I expect this move to retest the resistance before we once more get rejected.