Bitcoin : Long term, Logarithmic and $1000Hello all, here we go again with the bitcoin's analysis. Here I provide you the long term projection of the bitcoin.
First of all, before you start to read this analysis, I want you to know that I'm one of the bitcoin's enthusiast which is very loyal with bitcoin. I personally believe in bitcoin's prospect in the future. And the last thing is that this analysis is just 1 of some potential scenario to occur in the next future and not a FUD at all.
So, here I use the Logarithmic view on weekly chart and using the BITSTAMP market price because it provides a longer historical data comparing to the other exchanges. There are 2 support trend line that has held the price of the bitcoin which are yellow and green. For the yellow trend line, we can see that it had been broken down on October 2018 and the 2019 bull run is just an action of retest toward this previous support trend line that is now become resistance. And for the green trend line, we can see that it still holds the price of bitcoin from further drop, this trend line has already held the price of bitcoin since August 2015, this is a 4.5 years trend line!
This January 2020 bulls market could only be the relief rally because the price has already touched the green support. When the price touch the 4.5 years trend line, it has to respect this area as well before breaking it down. And if we see the price breaks down of this green support trend line, I will targeting the $3000 as the double bottom and $1000 simply if the support can't hold.
The action on the yellow trend line is clear that the price has already broken it down, retested it as the broken support that became resistance and the price got rejected. Simply, if we use the break out strategy as our benchmark, current cycle could be the 3rd phase of break out strategy which is very bearish!
Please once again takes note that this is only the worst scenario for bitcoin and personally, I don't like this scenario to occur. So, don't make this as the only path that is available because there are still a lot of bullish scenario too.
