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 .
A break on the upside would need significant 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 . 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 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!
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.