Lets zoom out on a weekly chart and plot some obvious trend lines on the log scale. We can clearly see that there are 3 major trendlines converging that should stop the rot and provide a base to move upward from. If we use the 2014/2015 movement I have predicted what could follow in the coming months . . . .
Good news Bitcoin fans, we are possibly in a descending wedge and NOT a Triangle. This means that there could be a reversal coming soon. We first need to drop to 5400-ish and then we will start our ascent back to 11k before a possible drop all the way back down again. If Bitcoin continues to rise from here it will hit about 7500-ish before returning to lower...
The arc's are getting smaller and longer with price bouncing off the two trend lines . If this trend continues a mighty battle will be fought in the beginning of October between the bulls and the bears . . . Who will be the winner . . The Moon or the Fires of Hell . . .
Well, well, well . . 3 falling wedges will finish off this triangle perfectly . . . Mind you it has been like dropping a ping pong ball on a table, each bounce has been smaller and smaller. Lets hope the final bounce lights the booster .... TO DA MOOOOON !!!
Lets take a step back and have a Macro look at Bitcoin on the weekly chart and see whats going on with this Cycle. If you are an Elliott fan than this will hopefully make some sense. We are currently in a wave 4 correction which has formed a symmetrical triangle and the decreasing volume confirms the pattern. The bottom of the triangle has proved very supportive...
If you follow Bill Williams you will see almost the perfect trade setup, here's why:
A bullish reversal bar has formed at the correct angle and below the alloigator
There is clear divergence between wave 3 and wave 5 of the correction (which shows a reversal is going to happen)
We have a falling wedge and price usually breaks to the upside
Looking at a similar fractal from a few days ago it seems Bitcoin might follow the same path. The momentum is also building and will soon break the zero barrier, headed north within the next 8 hours is my prediction. If I work off the previous fractals break out we should see a rapid rise to around 9800.
I have a feeling Bitcoin will break out of the channel soon, but which way is the question? My leaning is towards the upside but lets see how it plays out (if goes according to my previous fractal idea the the upside is the way to go).