This chart shouldn't be considered to place any trades, this is just one of many speculative possible path the price of Bitcoin could take, but it's one I've been thinking about for a few days.
Technically we're still on a bear market, and all you need to do to know that is look at the weekly chart. You'll see a number of lower lows and lower highs. This, however, doesn't deny that the market has started showing some sign of bullishness if we ignore the lack of volume, which will be expected near the trend reversal confirmation.
This set of circumstances aligns pretty well with the path that's shown in my chart. We would have to go through another big dump, during which the volume should be visibly higher and it should peak once we reach the possible first higher low, which should be around $7000-7200, more or less. The head and shoulder chart pattern is not really that important, but the first higher low would be a crucial indicator that bulls are finally taking over the market. The RSI could become oversold on the daily at this level, providing an additional push from this widely used indicator.
From the on, we still need to break out above the neckline of the H&S, and most importantly, close above the previous lower high, which is around $9193, to finally confirm a bull market is indeed in place.
Again, this is just a possible hypothetical scenario, not a prediction. It's pure speculation and it may become invalidated very easily in the near future. That being say, for now, I'm going to keep this possibility in mind.
Cheers!
Technically we're still on a bear market, and all you need to do to know that is look at the weekly chart. You'll see a number of lower lows and lower highs. This, however, doesn't deny that the market has started showing some sign of bullishness if we ignore the lack of volume, which will be expected near the trend reversal confirmation.
This set of circumstances aligns pretty well with the path that's shown in my chart. We would have to go through another big dump, during which the volume should be visibly higher and it should peak once we reach the possible first higher low, which should be around $7000-7200, more or less. The head and shoulder chart pattern is not really that important, but the first higher low would be a crucial indicator that bulls are finally taking over the market. The RSI could become oversold on the daily at this level, providing an additional push from this widely used indicator.
From the on, we still need to break out above the neckline of the H&S, and most importantly, close above the previous lower high, which is around $9193, to finally confirm a bull market is indeed in place.
Again, this is just a possible hypothetical scenario, not a prediction. It's pure speculation and it may become invalidated very easily in the near future. That being say, for now, I'm going to keep this possibility in mind.
Cheers!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.