Bitcoin has been in a state of indecision for the past week. we've seen or ups and our downs but in the end we have been moving sideways and this is the reason why.
The green trendline is the the one that has been holding us. It has been there since October 18, 2017 and saw us up to our ATH. The blue trendline is another old one that has been with us March 25, 2017.
As the chart shows, those two lines came together on February 6th and in tandem they put a pause on the selloff and gave us that great bounce. However, we have since dropped below the old blue trendline and it is acting as resistance on a move to the upside. Trapped between trendlines we have nowhere to move but sideways until something changes.
If we can break above the old trendline and get that as support. If that happens, I'll feel confident that we are going to end this downtrend and get a break out. However, that is a hard task and I imagine that we will ultimately drop down. In the event we do breakdown it seems reasonably clear we will go to 4100 and break out at that point.
While we'll have to wait for the answer, hopefully this gives some clarity to Bitcoin's "confusing" moves as of late.
The green trendline is the the one that has been holding us. It has been there since October 18, 2017 and saw us up to our ATH. The blue trendline is another old one that has been with us March 25, 2017.
As the chart shows, those two lines came together on February 6th and in tandem they put a pause on the selloff and gave us that great bounce. However, we have since dropped below the old blue trendline and it is acting as resistance on a move to the upside. Trapped between trendlines we have nowhere to move but sideways until something changes.
If we can break above the old trendline and get that as support. If that happens, I'll feel confident that we are going to end this downtrend and get a break out. However, that is a hard task and I imagine that we will ultimately drop down. In the event we do breakdown it seems reasonably clear we will go to 4100 and break out at that point.
While we'll have to wait for the answer, hopefully this gives some clarity to Bitcoin's "confusing" moves as of late.
Comment:
Another scenario that seems to be overlooked is that bitcoin could just move more or less sideways for an extended period of time. In that event, the various alts would pump until bitcoin had enough and decided to be king again.