EXTREME Bullish $BTC Scenario (WOW) $ETH $LTC $XRP $XLM
As you probably have already seen, BTC took a big time dive this past morning. While the general public will look for reasons in the news to justify the move, as a trader you already knew something was up when BTC broke the uptrend trend line around 16k.
Now, is this a bad thing? Not necessarily.
BTC had previously broken out of the symmetrical triangle it had previously consolidated in after the 20k run and dump. It broke out of that triangle to the upside 2 days ago, rallied up all the way to 17.5k area, the same price range as the left shoulder when bears came in and sold the price down.
Then this morning the selloff commences, BUT price found strong support at the former breakout point of the symmetrical triangle, the trendline where the arrow on the bottom lies. The bounce there looks very strong as it stands. Volume very high on the buy side and both RSI and OBV signaling a strong buy.
Now we go back into consolidation of the triangle breakout range, to the right shoulder of the head and shoulders on the long frame around 17.5k
I don't know how long this consolidation phase will take and it can still fail with a 4 hour close under the trendline that had previously held this bottom up BUT theres one thing to know..
Confirmation to the upside - I would be leaning towards massive upside, likely to new ATH if BTC breaks the right shoulder with a 4 hour close above the highest resistance trend line around 17.5k.
Why do I think this - we have seen this trend before, where we bump, then hump, then lump and dump. Look at the prior breakout from 11k to 20k. Very similar pattern where we retested the breakout trend line from the first breakout before taking off to new highs.
Failure on this - a 4 hour close below the current support trend line that has held the bottom of this morning around 13.9k area would signal a new trend has formed.
Not financial advice.
Now, is this a bad thing? Not necessarily.
BTC had previously broken out of the symmetrical triangle it had previously consolidated in after the 20k run and dump. It broke out of that triangle to the upside 2 days ago, rallied up all the way to 17.5k area, the same price range as the left shoulder when bears came in and sold the price down.
Then this morning the selloff commences, BUT price found strong support at the former breakout point of the symmetrical triangle, the trendline where the arrow on the bottom lies. The bounce there looks very strong as it stands. Volume very high on the buy side and both RSI and OBV signaling a strong buy.
Now we go back into consolidation of the triangle breakout range, to the right shoulder of the head and shoulders on the long frame around 17.5k
I don't know how long this consolidation phase will take and it can still fail with a 4 hour close under the trendline that had previously held this bottom up BUT theres one thing to know..
Confirmation to the upside - I would be leaning towards massive upside, likely to new ATH if BTC breaks the right shoulder with a 4 hour close above the highest resistance trend line around 17.5k.
Why do I think this - we have seen this trend before, where we bump, then hump, then lump and dump. Look at the prior breakout from 11k to 20k. Very similar pattern where we retested the breakout trend line from the first breakout before taking off to new highs.
Failure on this - a 4 hour close below the current support trend line that has held the bottom of this morning around 13.9k area would signal a new trend has formed.
Not financial advice.