The current Bitcoin price action reminds me of rubber elastic powered balsa wood airplane that I used to play with when I was a kid. The red propeller would be attached to an elastic band and turning the propeller would wind up the elastic. The more you turn it, the greater the tension on the elastic and the higher the plane will fly, at least in theory. As long as the elastic didn't break. :-)
On the 30 minute chart the Bitcoin price has been coiling up between the 200 EMA on the bottom and the upper resistance line. The 21 EMA is the elastic being tightly wound up. In a couple of days (or sooner) it will be wound up so tight it will have to release all of that energy.
There are only 2 directions it can go, and it will move quite fast when it does breaks out. Make sure you have your limit buy orders or shorts already in place. Hopefully there won't be time for a fake out move prior to the breakout.
UP: I give it a 60% chance it will break to the upside to meet or exceed the recent high. When it gets to the high we may see a pause as profit taking occurs. But I don't expect we will see 10k again if this happens. DOWN: The other alternative is that the price will drop to one of the support zones. Support Zone #1 is around the 10,500 area and we will likely get a bounce from that. Zone #2 is less likely and I doubt we will be given another chance to buy in at 9100.
So there you have it. Will it soar to new highs? Or will the wings fall off our Bitcoin plane and it plummets to one of the support zones? We should know by Monday (probably sooner).
(Don't forget to hit the Like Button on your way out)
Comment
⋅
I updated the 30 minute chart with RSI and MACD wedges that are forming. I am not using them to determine the breakout, but they are interesting to see how both indicators are coiling up. The elastic is getting tighter. Let's hope it doesn't break (to the downside).
In the early hours of this morning, it appears a whale, probably using a drone, shot the wing off of my balsa wood plane causing it to fall $657 (5.5%) in just 10 minutes. I knew I should have used super glue on that wing. The neighborhood whale can be quite vicious and does not play well with others.
He sent the price back to the low of August 6th. This is why I drew my 2nd arrow (now yellow) where I did. We have to see if we move up from here (follow yellow arrow), or if the price continues to fall to the Support Zone #1. The blue resistance line remains intact. It looks like the bears won this one.
BDG
⋅
The price is currently 11.31 on Bitfinex.
It would be nice if we get an inverse Bart Simpson out of this, and have it go back up to the wedge, but this may be wishful thinking on my part. I was surprised there were no bulls to start buying at 11.3k. Where are the moon boys? Hiding under the bed I bet! They are afraid of getting eaten by the bears.
My best guess is if we break the recent low of 11.2k then we are headed to the support zone (bottom?). This could get ugly fast.
BDG
⋅
@BDG, that should have read "The price is currently 11.31k on Bitfinex".
lux911
⋅
Great job bro! You have one of the moste valuable contents for me. You should get up to 100 likes and should have couple 1000s of folowers! Keep up the good work!
He sent the price back to the low of August 6th. This is why I drew my 2nd arrow (now yellow) where I did. We have to see if we move up from here (follow yellow arrow), or if the price continues to fall to the Support Zone #1. The blue resistance line remains intact. It looks like the bears won this one.