Hello Traders! CTDave here again with another daily price analysis chart of BTC.
Long Term Analysis:
We all know that many different things have been happening to Bitcoin and the whole economy in general. In this analysis I am going to explain why I think Bitcoin is going to go up to a new high rather than dumping.
If we take a look at the red lines, we can see that a Broadening Top has formed. If breakout goes to the bottom, then the next demand zone is at ~18k. But if it goes down to the demand zone, we might see another broadening top arranged a little bit differently. Take a look at the screenshot below:
The orange line indicates the demand zone while the green line shows possible support for a new broadening top and the blue arrow shows the price movement. It is very likely the BTC might go down to the demand zone first because the 4-year cycle has ended.
The white arrow suggests a possible price movement with a small retracement to the 50k support/resistance area. The yellow arrows pointing at the volume show how in the past when the volume was very red, the price went up afterwards as is shown by the white arrow. So far, we have witnessed eight red weeks -- the worst in the BTC history. That is one of the reasons why BTC has the potential to go up. A look at the RSI indicator shows that Bitcoin is almost oversold.
Quick Overview:
Either BTC goes straight up to at least 80k with a minor retracement at ~36K (see below; Short Term Analysis) or it goes down to the demand zone at 18k, modifying the broadening top, just before shooting back up at about 2023-2024 when the four-year cycle starts again.
Short-Term analysis:
The chart shows a breakout triangle forming and it has two outcomes shown by the red and green arrows.
Thanks for reading, have a great day!
As always, I encourage everyone to please like, comment, and share my ideas, and follow me for more of these posts to be kept updated. Happy trading! Thank you!
Note: I am not a financial advisor, please do not trade solely based on my trading decisions. Do your own research or consult a professional financial advisor before conducting a trade.
I feel it would be a real shame to not print the 9th red W candle.
In the future someone will want to do it and won't be able to regardless of income. Like eating wild salmon or operating their own motor vehicle. So do it while you can, gnowhatimsayyin?
CTDave
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@scratchticket, haha, I would give you the honors to print it, I would be proud of you. Thanks for sharing!
TheSignalyst
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you are doing great Dave :D keep it up. I saw your comments also on KucoinS
cat4fire
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Agree that it's at a critical point that it can go up or down and it’ll make it a mid-term trend for that direction. There are too many unknown to predict that direction, since btc is not only itself, it moves as Nasdaq moves. I think the US stock market will stay still and bounce, and btc may do the same. Hopefully btc won’t break the historical support right now, otherwise, the mid-term pain causes all us
A bit semantic perhaps at this point, but, the USDT chart is a bit off, being that the first knife actually went to 24.6k however because USDT depegged the chart does not show it. I encourage all traders to consider what the implications are here if BTC is going to dive again. USDT may not be the stablecoin you want to be in. And if it truly depegs there could be some serious carnage awaiting us. Trade safe!
CTDave
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@timbrecoin1, Unfortunately, KuCoin trading pairs are mostly with USDT, but I cash out after I'm done with the money. Thanks for sharing!
timbrecoin1
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@CTDave, sure thing. Kucoin has USDC for bitcoin and some other pairs. Hate to see folks get trapped in a UST type situation.
In the future someone will want to do it and won't be able to regardless of income. Like eating wild salmon or operating their own motor vehicle. So do it while you can, gnowhatimsayyin?