Bitcoin - Bullish, Bearish, and Neutral Scenarios Played Out
Hey team! As I was charting on the different time frames, I wanted to give my thoughts on the bullish, bearish, and neutral scenarios of Bitcoin and what it could mean for the market as a whole.
BULLISH SCENARIO
First, let's start with the bullish scenario and point out the obvious bullish triangle in blue. Notice how I placed my support lines on the candle bodies of the price action? I did this to emphasize the buyer support creating those wicks on the price. Buyers are scooping up cheaper BTC every time it dumps. To me, this is the real support area and strengthens the case for the bulls. The price action in the short-term, however, is far from bullish. If we continue to the downside I think $11,000 will be the bulls area of support. This area is right in line with the pink uptrend that has support BTC and pushed it higher. Given Bitcoin's demonstrated buyer support on lower prices, I think a bear trap could likely outcome so be aware bears! Bitcoin is in a bullish uptrend and it broke the All-Time HIgh resistance, a trend it has never broken. Sticking with the trend, the bulls have the advantage.
NEUTRAL SCENARIO
Let's be honest, Bitcoin can't grow forever. And as Bitcoin has been going sideways, the alts have been jumping and showing the best signs of life since 2017. I think that Bitcoin remains sideways and above the All-Time High trend, this is bullish for the alt market. If BTC starts moving into Bullish or Bearish territory, it might be best to leave the alts and stick to BTC or USD.
BEARISH SCENARIO
The situation that Bitcoin currently finds itself in, however, is a great chance for the Bears to take the reins and push BTC lower. I see a big head and shoulders pattern with a head height of $1,000. The reason $11,000 is a key area for the Bears is because this is the neckline for the HS pattern and it's also where the pink uptrend is acting support. If this were breached, the All-Time High trend would be the last hope against the bears. If this head and shoulders pattern were to complete, its target price would be around ~$10,100 which is well below the all-time high trend. Bitcoin has been following the DJIA . Be aware that a crash in the stock market would likely cause the Bitcoin market to follow suit. I am most definitely keeping my eye on the DJIA and other indices in case another April dump comes. If it does, I will have my bear hat back on and will be shorting the market hard.
My bias: I am biased to the bullish/neutral scenarios at the moment. It's hard to favor the bears with Bitcoin being so bullish. Although I know the stock indices will soon crash and I believe it will take the crypto market with it, I have to stick with the trend until the bears demonstrate they're a threat. So until then, MOON BITCOIN MOON!
BULLISH SCENARIO
First, let's start with the bullish scenario and point out the obvious bullish triangle in blue. Notice how I placed my support lines on the candle bodies of the price action? I did this to emphasize the buyer support creating those wicks on the price. Buyers are scooping up cheaper BTC every time it dumps. To me, this is the real support area and strengthens the case for the bulls. The price action in the short-term, however, is far from bullish. If we continue to the downside I think $11,000 will be the bulls area of support. This area is right in line with the pink uptrend that has support BTC and pushed it higher. Given Bitcoin's demonstrated buyer support on lower prices, I think a bear trap could likely outcome so be aware bears! Bitcoin is in a bullish uptrend and it broke the All-Time HIgh resistance, a trend it has never broken. Sticking with the trend, the bulls have the advantage.
NEUTRAL SCENARIO
Let's be honest, Bitcoin can't grow forever. And as Bitcoin has been going sideways, the alts have been jumping and showing the best signs of life since 2017. I think that Bitcoin remains sideways and above the All-Time High trend, this is bullish for the alt market. If BTC starts moving into Bullish or Bearish territory, it might be best to leave the alts and stick to BTC or USD.
BEARISH SCENARIO
The situation that Bitcoin currently finds itself in, however, is a great chance for the Bears to take the reins and push BTC lower. I see a big head and shoulders pattern with a head height of $1,000. The reason $11,000 is a key area for the Bears is because this is the neckline for the HS pattern and it's also where the pink uptrend is acting support. If this were breached, the All-Time High trend would be the last hope against the bears. If this head and shoulders pattern were to complete, its target price would be around ~$10,100 which is well below the all-time high trend. Bitcoin has been following the DJIA . Be aware that a crash in the stock market would likely cause the Bitcoin market to follow suit. I am most definitely keeping my eye on the DJIA and other indices in case another April dump comes. If it does, I will have my bear hat back on and will be shorting the market hard.
My bias: I am biased to the bullish/neutral scenarios at the moment. It's hard to favor the bears with Bitcoin being so bullish. Although I know the stock indices will soon crash and I believe it will take the crypto market with it, I have to stick with the trend until the bears demonstrate they're a threat. So until then, MOON BITCOIN MOON!