Everybody is soo zoomed into smaller timeframes... most people miss the big picture.
Many people call for prices below 6k but i think it's not likely anymore, the narrowing bollinger band is showing that volatility is decreasing.
In my opinion BTC is forming a "Cup and handle".
Of course it's not perfect, but let's keep in mind that we're talking about something which is not tied to any goods so it can't be perfect. Also the market is young not mature.
What is a cup and handle:
- The cup should be a U shaped bottom, the softer it is, the better the signal is. As you can see the price sits between the two orange curves which is pretty soft.
- The depth of the cup in extreme conditions (extreme is perfectly applicable to crypto markets) can retrace to 2/3 (66%) of the previous all time high (most of the people would say that this is too deep to be a cup and handle). We are now aproximately at 70%... a bit too much i know but i think it'll still work.
- The cup can extend in general from 1 to 6 months (aproximately). We are in the 4th month now. Two months left until the handle.
- The volume on the bottom of the cup should be low and below average. Well, if you look at the average volume on coinmarketcap, you'll find that it's 10bln for the last 4 months. Bitcoin had a volume of around 6bln last month.
Another good sign that we're on the bottom of the cup is that the two indicators, CCI and relative momentum index, has found support in the oversold zone and slowly started to recover.
Google trend search is very low for bitcoin, major companies like Google and Facebook will disable ads which are related to crypto, so the general public doesn't care now, but in the meantime some interesting positive news appear which tells us that big boys want to enter into the market.
All of this can contribute to form a nice cup and handle pattern.
Many people call for prices below 6k but i think it's not likely anymore, the narrowing bollinger band is showing that volatility is decreasing.
In my opinion BTC is forming a "Cup and handle".
Of course it's not perfect, but let's keep in mind that we're talking about something which is not tied to any goods so it can't be perfect. Also the market is young not mature.
What is a cup and handle:
- The cup should be a U shaped bottom, the softer it is, the better the signal is. As you can see the price sits between the two orange curves which is pretty soft.
- The depth of the cup in extreme conditions (extreme is perfectly applicable to crypto markets) can retrace to 2/3 (66%) of the previous all time high (most of the people would say that this is too deep to be a cup and handle). We are now aproximately at 70%... a bit too much i know but i think it'll still work.
- The cup can extend in general from 1 to 6 months (aproximately). We are in the 4th month now. Two months left until the handle.
- The volume on the bottom of the cup should be low and below average. Well, if you look at the average volume on coinmarketcap, you'll find that it's 10bln for the last 4 months. Bitcoin had a volume of around 6bln last month.
Another good sign that we're on the bottom of the cup is that the two indicators, CCI and relative momentum index, has found support in the oversold zone and slowly started to recover.
Google trend search is very low for bitcoin, major companies like Google and Facebook will disable ads which are related to crypto, so the general public doesn't care now, but in the meantime some interesting positive news appear which tells us that big boys want to enter into the market.
All of this can contribute to form a nice cup and handle pattern.