Waited this long to carefully analyze bitcoins chart and get a grasp of what could have led to this parabolic move which is contrary to bitcoins bear market behaviour historically
whale pump, exchange manipulations to squeeze out shorts, Consensus FOMO etc where some factors i considered at first, but looking at the violent move from the 4000 level all the way to 8300 level, i am of the opinion that all factors listed above could not have pumped price this high, but rather we are seeing the aftermath of influx of institutional money finally hitting exchanges after months of accumulating OTC......... the sudden surge in volume, and current bitcoins market cap and volume as well as the overall market cap also corroborates this fact.
So Where are we headed from here????
Weekly:
There is extreme greed, FOMO, and exuberance right now, and the current sentiments are at ATH right now. This to me is a contrarian signal, moreover stochastic is at extreme levels and RSI is overbought, so i was expecting to see a reversal from this level atfter touching the 8380 area.
But the consolidation around this area shows the resilience of the bulls and the fact that we may be getting price acceptance at this levels and ultimately pull through to test anywhere around 9500-10000 levels before correction.
Keep in mind that for this to happen, we must get a close of the weekly candle above 8000 and move up from there in coming week
Daily
Interesting setup on the daily. A complete wyckoff accumulation at the 3100-4200 level and a bull break to the upper level at around 5000-5500 followed by a parabolic move giving a clear bullish structure of a confirmed bull market/uptrend.
Volume seems to be pretty huge right now, with price consolidating around 8300-7700 level, this could infer that the present move may not be complete yet.
Momentum is pretty strong, RSI and stochastic at extreme upper level, a push back to the 0.236 fib level at 7170 down to 6800 will mean a healthy correction for the next leg up to the 9500-10000 area........ NOTE: we must at least hold the 6800 level and bounce from there for the bullish momentum to continue.
Finally, every parabolic move in bitcoins price history has been followed by a major correction. If we were to correct from the 8300-8400 level, especially because of the overly bullish sentiments, i do expect a major correction to the 0.618 fib level at around 5200-5000, and if we were to hit 10000 before correction, a .618 fib retrace will take us to 5800-6000 level in which case both scenerio will give us a clear confirmation of the bull trend.
whale pump, exchange manipulations to squeeze out shorts, Consensus FOMO etc where some factors i considered at first, but looking at the violent move from the 4000 level all the way to 8300 level, i am of the opinion that all factors listed above could not have pumped price this high, but rather we are seeing the aftermath of influx of institutional money finally hitting exchanges after months of accumulating OTC......... the sudden surge in volume, and current bitcoins market cap and volume as well as the overall market cap also corroborates this fact.
So Where are we headed from here????
Weekly:
There is extreme greed, FOMO, and exuberance right now, and the current sentiments are at ATH right now. This to me is a contrarian signal, moreover stochastic is at extreme levels and RSI is overbought, so i was expecting to see a reversal from this level atfter touching the 8380 area.
But the consolidation around this area shows the resilience of the bulls and the fact that we may be getting price acceptance at this levels and ultimately pull through to test anywhere around 9500-10000 levels before correction.
Keep in mind that for this to happen, we must get a close of the weekly candle above 8000 and move up from there in coming week
Daily
Interesting setup on the daily. A complete wyckoff accumulation at the 3100-4200 level and a bull break to the upper level at around 5000-5500 followed by a parabolic move giving a clear bullish structure of a confirmed bull market/uptrend.
Volume seems to be pretty huge right now, with price consolidating around 8300-7700 level, this could infer that the present move may not be complete yet.
Momentum is pretty strong, RSI and stochastic at extreme upper level, a push back to the 0.236 fib level at 7170 down to 6800 will mean a healthy correction for the next leg up to the 9500-10000 area........ NOTE: we must at least hold the 6800 level and bounce from there for the bullish momentum to continue.
Finally, every parabolic move in bitcoins price history has been followed by a major correction. If we were to correct from the 8300-8400 level, especially because of the overly bullish sentiments, i do expect a major correction to the 0.618 fib level at around 5200-5000, and if we were to hit 10000 before correction, a .618 fib retrace will take us to 5800-6000 level in which case both scenerio will give us a clear confirmation of the bull trend.
