Despite the regulations in New York the prospects for Bitcoin on the long-term are still good. Bitcoin is still bullish and a big breakout is coming. This is something that you can expect when a cup and handle forms on the chart. In most cases bulls will take control after the formation of the handle. Than the price will go up after the handle resistance breakout. If the price breaks above the handle resistance, it will keep on going up strongly. This up movement can be at least the same as the size of the cup depth. In this case the target wil be 670-360= 310, 310+670= 980USD.
Short-term we might see regression back to 550 a re-test of that level. Thats important to watch because if that support is broken to the downsite we will see a new low around 450. Than I have to reconsider my strategy. From that point Bitcoin will go up again to get ready for the new t rally unfortunately this will take a few more months.
But for now think a big rally in August is nog out of the question at all!
Good luck guys!
Comments
ChartArt
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Doesn't the large spike between April and May 2014 mean that it's not a cup and handle pattern? But still a interesting idea.
Maddie
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I do not think the head and handle is not valid here because of the spike.
In my opinion, it sometimes happens that spikes are a part of the pattern.
Soon we will know if this was a cup and handle :) I'm expecting a uptrend based on watching the minute charts going slowly up. Therefore I agree with your cup and handle pattern idea.