Overview: Before giving you Our bullish + Bearish Scenarios, as well as my own personal bias, I'd like to explain what's going on in this chart. First and foremost, we can see our Macro support and Resistance, which are represented by the orange lines. The horizontal support line rests at 28k, which fortunately is a good deal of distance from our current price of about 50k. Additionally, you can see our downwards sloping line of resistance, which represents a trend-line we have been rejected from multiple times since 65k. Lastly, I pulled the fib retracement of the move from 65k, the 28k, which we'll touch on in our bullish and bearish scenarios.
Bull Case: As you can see, the horizontal support and the downwards sloping resistance form somewhat of a macro descending triangle. While these can often be a bearish bias pattern on smaller time frames, we have seen many scenarios in which this structure on a macro level breaks bearish. Nonetheless, let's say this were to break bullish - the approximate target for this move would bring us to 85k dollars. What I like about this target is that there is a lot of confluence with the 1.618 fib level which rests just above the descending triangle target. If we are to see a break to the upside, this will be my ultimate target for bitcoin in the coming weeks/months.
Bear Case: While bitcoin has had a great rally since crashing a few months ago, we are by no means out of the woods (so to speak) just yet. As you can see, we are approaching a significant resistance, which many bulls fail to realize does not have to break. The first clear target range if we get rejected would be the green (support) zone I have marked on my chart (37k-40k). This zone to me represents a crucial line that the bulls must hold, if they want to keep hope of a 100k bitcoin this year. If we fail to hold this zone, however, it's very likely that we capitulate back down to our support at 28k.
My own personal bias is that we will break bullish in the coming weeks. I believe it's highly likely that we re-test the green zone one more time before doing so, but the important thing to me is putting all bias aside so that I can be prepared to react in any direction.
As always, this is strictly educational and not intended to be financial advice in any way shape or form. If you appreciate the analysis, please like and follow to let me know. Additionally, I will respond to all messages from those who follow my account, so please don't hesitate to reach out with any questions about this post, or my view of the market in general.
Trade Safely my Orca's, and DONT GET WRECKED!
Bull Case: As you can see, the horizontal support and the downwards sloping resistance form somewhat of a macro descending triangle. While these can often be a bearish bias pattern on smaller time frames, we have seen many scenarios in which this structure on a macro level breaks bearish. Nonetheless, let's say this were to break bullish - the approximate target for this move would bring us to 85k dollars. What I like about this target is that there is a lot of confluence with the 1.618 fib level which rests just above the descending triangle target. If we are to see a break to the upside, this will be my ultimate target for bitcoin in the coming weeks/months.
Bear Case: While bitcoin has had a great rally since crashing a few months ago, we are by no means out of the woods (so to speak) just yet. As you can see, we are approaching a significant resistance, which many bulls fail to realize does not have to break. The first clear target range if we get rejected would be the green (support) zone I have marked on my chart (37k-40k). This zone to me represents a crucial line that the bulls must hold, if they want to keep hope of a 100k bitcoin this year. If we fail to hold this zone, however, it's very likely that we capitulate back down to our support at 28k.
My own personal bias is that we will break bullish in the coming weeks. I believe it's highly likely that we re-test the green zone one more time before doing so, but the important thing to me is putting all bias aside so that I can be prepared to react in any direction.
As always, this is strictly educational and not intended to be financial advice in any way shape or form. If you appreciate the analysis, please like and follow to let me know. Additionally, I will respond to all messages from those who follow my account, so please don't hesitate to reach out with any questions about this post, or my view of the market in general.
Trade Safely my Orca's, and DONT GET WRECKED!