Bitcoin pulled back almost by 25% just after breaking the 13500 benchmark making recently opened longs panic. According to the price action since the last Lower Low of 2019 (February 05th), this is a typical correction within the mini parabolic move.
Since the start of the pattern, BTC has seen relative pull backs after every peak, then consolidation which was followed by another aggressive rise.
During the course of this run, there have been 3 stages of buying pressure point that have supported the pattern from breaking downwards:
(A) = When the current channel offers support on its Higher Low and makes contact with the Parabola.
(B) = When the previous channel offers support from above on its Higher High.
(C) = When the previous channel offers support on its Higher High from above, the current channel offers support on its Higher Low and the Parabola makes a near contact.
So far the current pull back has been contained on the Channel 2 (previous channel) Higher High making stage (B) valid. What is left to complete the sequence is step (C).
This should be the next consolidation phase on the 1D chart. The last two lasted 22 and 24 days respectively. So technically I expect this phase to last within 20 - 26 days. The last two peak sequences (last Low to next High) lasted 18 and 17 days respectively. So there is a relative pattern that is being followed.
The same pattern which helped at making this accurate projection:
So if those stages hold, Bitcoin's relentless buying should be extended. Do you think they will hold?
I see choppy price action in coming month to shake out both longs and shorts. I also believe that we will see 8500$ before seeing 17k. We have a huge gap on futures and also I looked at the historical chart. Even in parabolic runs Btc had -40%+ retracements. Counting from recent top at 14kish to 8500$ we have around 39% drop. Even if we drop bull market won't stop until we make a new ATH. Halving is in May 2020, we haven't seen anything yet.
Appreciate your content TradingShot, keep it up!
TradingShot
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@Patrikas10, Indeed. The real bull starts a little after the halving. We have only seen a small fragment of the new bull cycle.
GlenGoodman
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Excellent analysis! Here's my shorter-term view. Since I posted it, the price fell sharply and I shorted the breakdown. It's been a good day!
Appreciate your content TradingShot, keep it up!