The Bitcoin Bulls are now taking the lead... A very nasty drop yesterday, today turns into a fake breakdown that can lead to a very strong bullish signal called "Bullish Engulfing, this signal is confirmed after the daily candle closes above $7175.
Here is the daily chart for Bitcoin with the signal highlighted:
We also have a bullish flag and EMA10 being challenged.
This action looks really good and can signal that the bulls will take the lead, but, just as a nasty drop turned into a bullish signal, this candlestick can change by the end of the day.
If prices for BTCUSD close above EMA10, we will hit $7400-$7500 easily, followed by $7970.
But if instead BTCUSD closes below $7175, prices can continue to range within the flag (black trendlines).
My view Fake breakouts and breakdowns are more common with low liquidity (low trading volume), our view for Bitcoin after the 18-Dec. move is up. We are likely to see Bitcoin move higher.
Where do you think Bitcoin is headed in Q1 2020?
Share your thoughts and charts with us in the comments section below.
Thanks a lot for reading.
This is Alan Masters.
Namaste.
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- BE HUMBLE!
Accept others the way they are. Accept every situation as it is, as it comes.
Do what you have to do... Enjoy.
Accept yourself as you are...
To do that...
BE HUMBLE!
Namaste.
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We've Seen This Pattern Before! Bitcoin Can Hit $9,000+ Next
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Bitcoin (XBTUSD) Descending Channel, Bullish Flag & MA200
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- BTC Weekly- EMA10/50 Bearish Cross- Long-Term Target At $48,0000
I like your "stay humble" advice. I think we'll probably get a bounce up to the high 7'k's to the low 8's. Short term long opportunity possible. To my eyes it looks like BTC is still printing lower highs and lower lows within a down trend channel. I guess it all depends on how long you plan to hang onto the trade.