Let's try to think like the market makers. This is a potential short term setup, but not the only possible outcome by any means.
In this setup, we expect sell stops to get raided under $6050, and then push the price higher, which could cause two possible short squeezes, which would push the price up even more.
Could be good.
The development of an inverse head & shoulders chart pattern could potentially turn into the bouncing point for Bitcoin -0.37% , but we'll have to wait and see if this will give it enough momentum to overcome the resistance around the ~$8000 level.
From the current price level, we could see a drop between $5900 and $6250 to finish forming the right shoulder, and...
I want to start by saying that I don't know when BTCUSD will turn bull, what I've written here is the analysis and the targets I obtain with the information I have.
Daily Chart (left)
We clearly got rejected twice around ~$6800 (double tops), which coincides with our previous bottoms zone, so it appears that our previous support is now resistance.
Let's look at the weekly chart on the right. The first thing that we can notice is that the TD Sequential (or DeMarks) indicator is showing a red 8, and that a red 9 will form if next week's candle closes below ~$6400. A perfected red 9 would require a candle closing below ~$6150. Either one could trigger enough buying momentum to cause a trend reversal that could...
$6800 and $5500 would be the short term targets in case of a breakout or a breakdown.
Indicators look neutral even with the Stoch RSI overbought (curving up).
If break down occurs an inverse Cup & Handle pattern forms, which could pull the price down to $5500, which COULD be our bottom before rallying, keeping in mind, much lower targets could be reached,...
Pretty self-explanatory analysis. We have two possible bouncing zones, one around $7100, on the lower trend line of the symmetrical triangle, and the other between $6200 and $6500, somewhere in between the previous two lows. Lower bouncing zones are possible, since a descending triangle may be forming, but let's hope we don't go that low.
Currently sitting on strong support, potentially forming a double bottoms at a level which, until recently, hasn't reached since the last BTCUSD rally from last December. The only issue, and it's a big one, is the volume, but since this is a $20 million mcap coin, it still has hope for a decent rally.
If you check the log BTCUSD chart, you can see how the old 20K trend line and the lower trend line on the wedge meet a little too perfect at almost 7K.
This is, in my opinion, the point with more probability to observe a bounce, as we have two strong support concentrated in one point.
Keeping in mind that in the end the market will decide...
Now that Alt-season seems to have arrive many everything looks good, and LUNBTC looks it's about to join the party.
The way the volume is spiking makes me think of a potential rally, after bouncing off the bottom of the channel. It also appears an ascending triangle is forming.
The targets from current price are at 72% and 182% but with enough "alt-season...
SRNBTC couldn't look any better. Ascending triangle, within a huge falling wedge, and about to breakout from both. Stoch RSI just coming out of the oversold zone and huge volume compared to prior weeks. I mean, even if it doesn't work out, this is a great setup.
BTCUSD seems to be about to break out from an ascending triangle or similar consolidation, this could result in a strong upwards movement. It also seems to be moving in a new bullish channel (light blue trend lines). Some alts may drop a little, but nothing to worry about. Yet.
Markets are actually unpredictable, so they don't follow a predetermine pattern, but sometimes they do, and this analysis is done assuming this is the case.
The bullish scenario would put us at around 50K in a little less than 3 months.
The bearish route would mean a slowly drop to pretty low levels, perhaps under 5K, in a much longer time frame, probably over a year.
Looking good and healthier than it's been in a while.
Things to monitor: if we don't bounce down at strong resistance (white trend line) we could be closing a Complex iH&S. This could put us in the hot zone and near ATH - a critical level.
As BTCUSD bounces off support (lower symmetrical triangle trend line on the log scale) after having formed a double bottoms pattern, we observe two key levels that have served as previous support/resistance around 9000 & 9500. They could become trend reversal points. Otherwise our target is around 10700 (upper symmetrical triangle trend line).
You know guys, about BTCUSD... there's such a thing as a multiple shoulders inverse head and shoulders, it's called "Complex Head & Shoulders Bottom", and it's a pattern with low failure rate. It's looking that way, but we'll know when the pattern gets closed and breakout occurs. Could this be the final push?