Bitcoin was in a descending triangle in 2018, fell accordingly where it found support on the 200 weekly moving average.
This then forms a falling wedge , which is a bullish pattern . We have to measure the difference between our lowest and highest point in the falling wedge , then add it on top of the resistance on the moment of breakout to predict how high we will go.
But first we need to see how bitcoin made a symmetrical triangle at the bottom, which usually also breaks bullish . As you can see it did; and thereby it also broke the above resistance of the falling wedge (around 5000)
Our upside target was : (12000-3150) + 5000 = 13850, please note that those calculations are approximate, but they are not too far off. In this case bitcoin had a huge upside wick to about 14000.
The situation now looks similar. This doesn't mean we will break bullish just yet; we could still fall lower to the 0.618 fibonacci retracement at around 7200 and the price would remain in the falling wedge .
However we are also being supported by the 100 weekly moving average. Sounds familiar to what bitcoin experienced with the 200 weekly in late 2018.
If we believe this is a similar situation, then we are now in a bullish symmetrical triangle, and a breakout before end of november is likely.
Bitcoin would need to target the upside resistance of the falling wedge in the low 9000's, and if it breaks out; our approximate target would be:
(14000 - 7700) + 9200 = 15500
This then forms a falling wedge , which is a bullish pattern . We have to measure the difference between our lowest and highest point in the falling wedge , then add it on top of the resistance on the moment of breakout to predict how high we will go.
But first we need to see how bitcoin made a symmetrical triangle at the bottom, which usually also breaks bullish . As you can see it did; and thereby it also broke the above resistance of the falling wedge (around 5000)
Our upside target was : (12000-3150) + 5000 = 13850, please note that those calculations are approximate, but they are not too far off. In this case bitcoin had a huge upside wick to about 14000.
The situation now looks similar. This doesn't mean we will break bullish just yet; we could still fall lower to the 0.618 fibonacci retracement at around 7200 and the price would remain in the falling wedge .
However we are also being supported by the 100 weekly moving average. Sounds familiar to what bitcoin experienced with the 200 weekly in late 2018.
If we believe this is a similar situation, then we are now in a bullish symmetrical triangle, and a breakout before end of november is likely.
Bitcoin would need to target the upside resistance of the falling wedge in the low 9000's, and if it breaks out; our approximate target would be:
(14000 - 7700) + 9200 = 15500
Comment:
Bitcoin reached another low on the support line of the falling wedge at 6500 and is currently bouncing to the low 7000's, it's possible to find a bottom at the low 6000's in coming week if we can't break above 100 weekly moving average at 7500, if we do break above 7500 the next target will be top of the falling wedge at 9000.