Bip91
BTC/USD and sleep well.Upward pressure on exchanges, expect a good squeeze in both BTC/usd and LTC/USD in the next few hours. IF you wish to withdraw your private keys before, 1 Aug. please plan on long wait times on network! To avoid inconvenience and possible losses of free BCC/USD if not withdrawn to private address in time, PLAN ACCORDINGLY. :)
CHEERS!
Bitcoin breakout to occur this weekend! BIP 91. Coil Pattern.As I analyze my chart and concur chart signs with price, time, and news, I must conclude that Bitcoin has the most probable chance to break out and UP by Sunday.
Here's my case:
1) BIP 91 lock-in. We got 80.5% this morning. See www.xbt.eu
2) Two more days until activation. This puts us at Friday. Markets move to the far East around this timeframe.
3) Symmetrical pattern (also known as Coil) forming with descending volume and a bullish spinning top Doji (so far) on the daily. Generally, when breaking out of these triangles, we follow the long-term trend.
4) We want to test support again, the upward sloping RED trendline currently below us. If done, we'd experience nice bounce momentum to push us through our overhead resistance points at around $2344 (78.6% Fib retracement), $2420 (huge past support/resistance), and our Middle Bollinger and top of our channel, wherever those end up being.
However, CAUTION is to be exercised. There is a ton of resistance overhead and a chance we could still break down through our RED trendline support and back into negative territory.
REMEMBER, we are still in our bearish channel so these predictions are really a bit premature. At the same time, I don't want the higher risk traders to miss out on good buying opportunity here. Dollar cost average yourself in. I usually start at 20%. Up or down, keep adding in.
If we break UP we may go all the way up to the GREEN trendline and test.
If we do go down we WILL go all the way back down to $1845 but probably not lower, unless something disastrous occurs news-wise.
Happy trading friends and remember that buying here is not advice. It is a high risk trade. Your best bet is actually to wait until the breakout is confirmed. You'd have to get in at a higher price but it is a much lower risk trade and direction will be confirmed.
Bitcoin Bullish! BIP 91. And test of top of downtrend channel!In my last post, I completely overlooked the news of BIP 91. Therefore, my short call became null and void. Being away from my desk for almost a week caused me to miss this important news. As of this morning, BIP 91 was signaled by 66% of the miners. This is huge. Only 80% is needed and if locked in, will help prevent a fork. Only 14% more support is needed to lock in BIP 91 and as I understand it tonight miners will have another chance to begin signaling.
Watch the chart at the following link to keep on BIP 91 adaptation: www.xbt.eu
A few notes of caution before we become bullish again:
1) We are still in the RED downtrend channel
2) We are nearing the top of this channel and will test it's resistance strength soon
3) Typically, a channel resistance/support is not broken without multiple hits
4) RSI is also indicating some resistance soon
5) Middle Bollinger Band to act as resistance soon
6) Huge resistance at $2400 coming up soon
I could be wrong, but all of this indicates to me that we might see at least one more leg down before breaking through these strong resistance points. This theory seems to correlate with our timeframe as well.
I don't know that I see us going back down below our upward sloping RED trendline again now that we are above it. I think it will act as support now and may end up helping us break out of our bearish RED channel in the next few days.
BOTTOM LINE: I expect us to dip a bit in the next few days before breaking out, but not below our RED support.
