Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the daily BTC chart, you can see that Bitcoin is testing the top side of a huge downtrend channel, which it has been trading in for over a year. To those who don't believe that this is a downtrend channel, I can quickly prove that it is, by showing the reactions that BTC has made to this channel.
On the top side of it, you can see that we had two reactions between February and March of 2018. On the bottom side, we had three clear reactions between then now as well. Additionally, there were several reactions on the center line of the downtrend channel, all throughout the bear market. So, this is most definitely a downtrend channel.
This is beautiful, because it helps us make a little more sense of what has been going on, and it puts more perspective on where we may be heading.
As you can see, we have poked up above the top of the downtrend channel. However, BTC has been struggling to stay above it, and we are currently retesting the top of it at this very moment. So, if BTC fails to hold the top of this big downtrend channel, then we will obviously head back inside of it. However, it BTC holds the top of the channel, and breaks out to the upside, then the price target would be at about 14000. That number is easily found by taking the width of the channel, and adding it to the breakout point, which puts price right around 14000.
The main problem, is the NVT sell signal that has been building, as well as the divergence from the log chart's regression line, and the extremely overbought money flow index. Those are all things that I discussed in my previous BTC analysis, as reasons for why I am not a believer in the bull market yet. However, if we see a successful breakout above this channel, I will be a believer. On the other hand, if we fail here, I will maintain my view that BTC is still in a transition phase, and that the bull market has not yet started.
I do think there is a higher probability that BTC will get rejected here, and fall deeper into the downtrend channel, particularly because of the NVT, MFI, and log regression issues. Nevertheless, I will let BTC show me the forward path I should take, as I closely monitor the price action around the top of this extremely important downtrend channel.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
"People who think we are just going to skyrocket above that major resistance around 6000 are delusional. It took months of testing for us to break down below that level. It will take months of testing for us to break out above it."
MagicPoopCannon -2019
Poukitoun
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@htlanes, LOL XD
CryptoHedge_DG80
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Hei Magic , seriously ? This post is funnier than a Dilber Comic strip... that downtrend channel is just made up by picking 2 random points that fit your imagination. You are becoming more and more the Master of Click bait and Worthless charts. Following the current real trend, we go to 9k and 10k from here , you then turn bullish and boom market Crashes... but you will say "I told you NVT was flashing sell" . Come on..
AvramM
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@CryptoHedge_DG80, I wish there was a way to block traders on here. Magic is either high, stupid, or just maliciously giving people bad information.
At best he's incompetent. At worst he's a sociopath.
Looking at the daily BTC chart, you can see that Bitcoin is testing nothing on a huge uptrend channel , which it has been trading in for over 6 years.
To those who don't believe that this is an uptrend channel , I can quickly prove that it is, by showing the reactions that BTC has made to this channel.
On the top side of it you can see we had two reactions and also on the downside, maybe more of we push the lines around a bit more or change to weekly or monthly chart.
Additionally, there were several reactions on the center line of the uptrend channel and if we add more lines here we could see it hitting them even more.
If Bitcoin can keep up it's pace and current direction, the pricetarget would be around 50.000$ somewhere august 31st and september 1st.
There are also some very complicated indicators that turn red sometimes but i won't get into detail here because sometimes the just get even redder.
@Je_Buurman, this is a ridiculous graph btw, but even with that channel, do you think PA will maybe just maybe gravitate towards to the bound of the channel it spent most time near? which is LOWER bound ?:) it also makes perfect sense for it to do so mid term (5.6k to sub 5k) considering other TA. man the fomo is strong in Poo's comments.
MagicPoopCannon -2019