As I said in my last chart BTC is oversold and multiple indicators are showing that it has bottomed for now. From bottoming this will allow BTC to reach its next high. I believe this will be $14,400 before the next consolidation.
Looking at the chart there is a completed inverse head and shoulders pattern. This pattern is bullish and will allow us to reach the $14,400 level. The Bollinger Bands show that we are at the bottom of the bands. This doesn't necessarily mean we have bottomed it just means there is room to grow if we do have a reversal of this current dip.
The MACD had a nice upward trend that was created over the last 3 months but unfortunately it was broken today. I don't think this will be a problem however as the blue line is beginning to flatten out and reverse. Looking at the RSI we are still only just above oversold. This is a good thing as it allows for larger growth if we do have a reversal.
The final indicator that shows we may be looking at a huge bullish trend is the amount of volume over the last 2 days. It has been bigger than the whole last month and a bit. The only time the volume was larger was when BTC was bottoming at $6,000.
I am looking at $14,400 as our next level of resistance as it was the high off the beginning of a huge sell off from the 15/1 to the 17/1. This huge sell off hasn't really created any resistance between its low and $14,400. This level also sits at just above the 50% retrace from the all-time high to the low of this dip. This level is where BTC went from being bullish to bearish over the last 3 months.
Anyway this is just what I think of the current market conditions. This might not end up happening and we continue to dip but from what I can see and have explained I think we have bottomed or are close to bottoming. If we have bottomed this will allow for the inverse head and shoulders pattern to push BTC to $14,400. If you were to buy a BTC right now and it does go up to the $14,400 range this would be about a $6,000 profit.
Looking at the chart there is a completed inverse head and shoulders pattern. This pattern is bullish and will allow us to reach the $14,400 level. The Bollinger Bands show that we are at the bottom of the bands. This doesn't necessarily mean we have bottomed it just means there is room to grow if we do have a reversal of this current dip.
The MACD had a nice upward trend that was created over the last 3 months but unfortunately it was broken today. I don't think this will be a problem however as the blue line is beginning to flatten out and reverse. Looking at the RSI we are still only just above oversold. This is a good thing as it allows for larger growth if we do have a reversal.
The final indicator that shows we may be looking at a huge bullish trend is the amount of volume over the last 2 days. It has been bigger than the whole last month and a bit. The only time the volume was larger was when BTC was bottoming at $6,000.
I am looking at $14,400 as our next level of resistance as it was the high off the beginning of a huge sell off from the 15/1 to the 17/1. This huge sell off hasn't really created any resistance between its low and $14,400. This level also sits at just above the 50% retrace from the all-time high to the low of this dip. This level is where BTC went from being bullish to bearish over the last 3 months.
Anyway this is just what I think of the current market conditions. This might not end up happening and we continue to dip but from what I can see and have explained I think we have bottomed or are close to bottoming. If we have bottomed this will allow for the inverse head and shoulders pattern to push BTC to $14,400. If you were to buy a BTC right now and it does go up to the $14,400 range this would be about a $6,000 profit.
Comment:
We are now back above the downward channel this is a good sign
Comment:
The MACD is now crossing over as well Bitcoin has gone up almost $1,000 since I have made this chart
