Bitcoin Very Bullish Divergence - Fact Or Fiction? Find Out Here
Hello Friends,
All news, fud, fomo, aside here is my outlook on the way the price will reveal itself to us over the next couple of weeks / months.
in my previous chart I pointed out the descending wedge formation that leaded to a break out, I did not expect the break out to be this soon without us finally capitulating and coming to a point of reversal. We were able to find support at the $6,500 which I still am not convinced is the bottom. The market does not usually give you two chances to get in and I expect a deeper pullback. Although I can be wrong if we push above $9,500.
So far we have broken above 3 points of resistance (Two Moving Averages and A Downward Trend Line) We still have a 200 Day Moving Average, A previous resistance where the trend down started, as well as the 23% Fibonacci line.
So here are the four (3) realistic scenarios that I can see come to play from bullish To Bearish Scenarios
Scenario (1) - We continue this momentum and follow through with the break out above all resistances and return back to the highs of $12,000 finally breaking out and heading over to $15k then a pull back down.
Scenario (2) - We follow this newly formed channel, then finally breaking above the triangle and out to make new highs
Scenario (3) (My Current Stance) - This was another false break out that was ignited by short squeeze and will continue its way down to where bitcoin started the break out $5,000 area to finally reset the crash and restart the bullish momentum towards the ATH $20,000 which can take up to 6 months to get back.
As you may know technical analysis requires you study the patterns on the charts in order to make calculated decisions to give you an edge for your trade. Bitcoin has been in a downtrend for the past 4 months, and traders are eager to jump back in to positions with just the slightest move up. But we must not forget the overall market that went up exponentially within a very short period of time. in my opinion bitcoin is cheap at both $6,500 or $10,000 or even $15k considering the fact that my long term targets are well over $25,000.
With this being said most traders are confronted with a dilemma of how to enter the market in a way where they end up having more of the favourite coins then they started. Most of these traders have been beaten and battered throughout the past few months and it seems as though the anxiety and fear of missing out of the market is getting to them. This can cause people to lose patience and jump in too early or get out too early. This is why dollar cost averaging is such a powerful tool. By buying in lots you break up the buying and limit the amount of fomo you have. When your in your in. and then your in for the long haul.
But overall we must not forget the long term objective. And that is the macro outlook, the fact that bitcoin can and will eventually break out of the previous ATH and continue higher, Lets try to get to these prices in one piece.
All news, fud, fomo, aside here is my outlook on the way the price will reveal itself to us over the next couple of weeks / months.
in my previous chart I pointed out the descending wedge formation that leaded to a break out, I did not expect the break out to be this soon without us finally capitulating and coming to a point of reversal. We were able to find support at the $6,500 which I still am not convinced is the bottom. The market does not usually give you two chances to get in and I expect a deeper pullback. Although I can be wrong if we push above $9,500.
So far we have broken above 3 points of resistance (Two Moving Averages and A Downward Trend Line) We still have a 200 Day Moving Average, A previous resistance where the trend down started, as well as the 23% Fibonacci line.
So here are the four (3) realistic scenarios that I can see come to play from bullish To Bearish Scenarios
Scenario (1) - We continue this momentum and follow through with the break out above all resistances and return back to the highs of $12,000 finally breaking out and heading over to $15k then a pull back down.
Scenario (2) - We follow this newly formed channel, then finally breaking above the triangle and out to make new highs
Scenario (3) (My Current Stance) - This was another false break out that was ignited by short squeeze and will continue its way down to where bitcoin started the break out $5,000 area to finally reset the crash and restart the bullish momentum towards the ATH $20,000 which can take up to 6 months to get back.
As you may know technical analysis requires you study the patterns on the charts in order to make calculated decisions to give you an edge for your trade. Bitcoin has been in a downtrend for the past 4 months, and traders are eager to jump back in to positions with just the slightest move up. But we must not forget the overall market that went up exponentially within a very short period of time. in my opinion bitcoin is cheap at both $6,500 or $10,000 or even $15k considering the fact that my long term targets are well over $25,000.
With this being said most traders are confronted with a dilemma of how to enter the market in a way where they end up having more of the favourite coins then they started. Most of these traders have been beaten and battered throughout the past few months and it seems as though the anxiety and fear of missing out of the market is getting to them. This can cause people to lose patience and jump in too early or get out too early. This is why dollar cost averaging is such a powerful tool. By buying in lots you break up the buying and limit the amount of fomo you have. When your in your in. and then your in for the long haul.
But overall we must not forget the long term objective. And that is the macro outlook, the fact that bitcoin can and will eventually break out of the previous ATH and continue higher, Lets try to get to these prices in one piece.
