TerryKinder

Bitcoin Price - Pop or Drop?

BITSTAMP:BTCUSD   Bitcoin / Dollar
This chart is a minor re-draw of the chart originally published by chrisdunntv. Changed the following:

1) Moved blue lines to touch candle wick lows and highs. You still have two touches on the ascending blue support line and the descending blue resistance line.

I believe this better reflects the recent weakness in the bitcoin price as highlighted in the yellow oval. It also allows a little bit of additional time for price to resolve as it has extended out the blue support and resistance lines a few additional days. I think those additional days will be needed to really get a good feeling for which way the price is heading. The way this was drawn showed price falling through the ascending support. I think this is what is going to happen ultimately, but believe by adding a little extra time for this to resolve that the move will be clearer should price drop through and head toward $560.

You can see that around the $560 level the Bitcoin price found support and did not fall all the way to the ascending blue support line.

However, recently, the price has consistently failed to reach the upper blue resistance line.

It looks to me like the price will fall through the ascending blue support line. We will then get a chance to see if near the $560 level will provide support or not.
You could even draw a small trend line from the 2nd touch point on your descending line. It will be interesting to see how it behaves at that line because the way I've drawn it, it seems to want to stay smack dab in the middle. I think we will see it start to move sometime tomorrow.
+1 Reply
TerryKinder MoonTrader
That's interesting. Was just looking and you could do something similar with the second touch point on the ascending line as well. It still surprises me a little how long the Bitcoin price can hang on before making a move. You can see the move forming quite a bit ahead of time - which is good if you're investing since it gives you time to react / prepare.
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Good work. It clearly goes toward green line - any update?
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I'm still looking at it, but here is another chart I have been playing around with...

https://www.tradingview.com/e/1GJXeGBX/

I suspect price will at least move to the bottom of the price channel.
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Asterix TerryKinder
Thanks, I was also thinking bottoming somewhere in high $500s is likely - and that we have not seen the bottom yet.
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