Decoding Bitcoin: Weekly Time Frame - Descending Channel Pattern
Bitcoin has been trading within a Descending Channel Pattern since February 2021, presenting opportunities and challenges for traders based on technical analysis. Let's analyze each period from a technical perspective and consider their potential impact on future price movements.
Period: Feb 2021 to Mid-Jul 2021 (50% Valuation Loss)
During this phase, Bitcoin entered the Descending Channel Pattern, displaying a four-phase Wyckoff structure on the daily timeframe. With a high of $64,854 and a low of $29,278, Bitcoin experienced a significant 50% price decline, indicating a prevailing bearish trend.
Period: Mid-Jul 2021 to Mid-Nov 2021 (230% Valuation Gain)
This phase witnessed an impressive bull run for Bitcoin. Surging from a low of $29,278 to a high of $69,000, Bitcoin recorded substantial gains of approximately 230%, reflecting a prevailing bullish trend.
Period: Mid-Nov 2021 to Early-Nov 2022 (80% Valuation Loss)
Bitcoin faced challenges in this period, characterized by significant volatility and market traps. With a low of $15,588, Bitcoin experienced an 80% valuation loss from its previous high of $69,000, signifying the continuation of a bearish trend.
Period: Early-Nov 2022 to Present (Potential 150% Gain)
A new bullish phase emerged during this period. Bitcoin rallied to a high of $31,000, representing a 100% valuation increase from the previous low. Currently consolidating near the Trend Line Resistance level within the $25,000 to $31,000 range, a breakout above resistance could indicate a continuation of the bullish trend, potentially targeting the $47,000 level based on historical patterns
We think it’s a successful plan. Thanks for sharing with us, keep going!!
Akaguma7
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I agree with you in the general sense of the idea, but I think you still need to read the news on the asset. By the way, do you somehow take the news into consideration when writing an idea?
Akaguma7
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Thanks
bestfarbit74
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good chart. I'm also bullish, however our targets my different