Time factor and momentum analysis on Bitcoin
During the time we do analysis, there are several things we need to know in details. Trading is not only about how to determine the strong price level in the horizontal basis but it is also about how will the market reacts in psychological way, whether the interest is still controlling the market or the fear is winning the battle. That's why we need to compare the size of price range, market capitalization and read the level 2 of candlestick. For doing this, there are 2 essential things which are price movement which I mark with the Y and the Time factor which I mark with the X. The longer time the price is trending at certain range, it will affects a lot of thing such as fear in the market, saturation level and the most important thing is future's movement.
Look at the Bitcoin, we know that the price has been trending at certain range since the last 45 days and this action alone has affected a lot of things as well. The most important thing that we can see here is that the possible X wave which I've anticipated on the previous analysis might come shorter that we've expected because we can see that the longer the price is trending in small range, the momentum will vanishes. I'm not talking about the bullish momentum only but also about the bearish momentum. There is support trend line that has been holding the price since March 2020 and we know that if the longer time it needs to break below current support zone, the smaller the correction will be.
That's why during the consolidation pattern, we will lost a lot of momentum and at the end of the day there will be an APEX as the crossover point between the support trend line and the resistance trend line. During current bitcoin's movement, that's clear that the price has lost a lot of momentum because of the consolidation movement. I still see a strong possibility of the price to forms possible X wave as one of the stage on double three structure during the correction wave. That's why I will lower my previous target of where the potential X wave will finish. My potential X target is at $40000 and extended toward $44000 which is much lower than what I've expected previously ($50000)
Look at the Bitcoin, we know that the price has been trending at certain range since the last 45 days and this action alone has affected a lot of things as well. The most important thing that we can see here is that the possible X wave which I've anticipated on the previous analysis might come shorter that we've expected because we can see that the longer the price is trending in small range, the momentum will vanishes. I'm not talking about the bullish momentum only but also about the bearish momentum. There is support trend line that has been holding the price since March 2020 and we know that if the longer time it needs to break below current support zone, the smaller the correction will be.
That's why during the consolidation pattern, we will lost a lot of momentum and at the end of the day there will be an APEX as the crossover point between the support trend line and the resistance trend line. During current bitcoin's movement, that's clear that the price has lost a lot of momentum because of the consolidation movement. I still see a strong possibility of the price to forms possible X wave as one of the stage on double three structure during the correction wave. That's why I will lower my previous target of where the potential X wave will finish. My potential X target is at $40000 and extended toward $44000 which is much lower than what I've expected previously ($50000)
