If you take the two most recent pivot highs and pivot lows, you can form a megaphone.
Also, if we take the channel that bitcoin is in and use the height of it to project a price target it matches very well with the upper resistance of the megaphone.
I have 2 rays going from the top of the 2013 and 2017 top going to the high at $42k. They both land around the $42-43k area forming a very strong support zone along with the bottom of the megaphone.
What to look for:
Once we reach around the $70k area or top of the megaphone, I am expecting a very strong pull back.
Even though there is a lot of accumulation around 48k I think it will blow past that right to $42k after some consolidation.
My reasoning behind this is because if you look at the bull run in 2017 and compare how bitcoin has moved in terms of percentages it is extremely similar.
If you want to look at 2017 you need to scroll all the way back(not log scale).
A 40% correction based on 2017 also lines up pretty much perfect with bitcoins strongest support and resistance now indicating we will have a resistance at $70k then fall to around $42k after.
Look at my idea from Feb. 11th it also shows how we are going to get to $70k, so far following very nicely. And for an alternate situation we could see it stop at $48k and back up if we look at bitcoin based on the 30% correction after $42k high.
Overall:
I want to make it clear that I think it will go to $70k first. Then a correction not a crash of 30% or more likely 40%. After the correction, I am thinking $100-200k.
So still bullish but looking to take profits around $70k.
Comment what you think and follow if you liked the idea.
Also look at the related ideas or click it on the chart.
For more detail on the channel look at my last idea, although, I drew it slightly different there.
Also, if we take the channel that bitcoin is in and use the height of it to project a price target it matches very well with the upper resistance of the megaphone.
I have 2 rays going from the top of the 2013 and 2017 top going to the high at $42k. They both land around the $42-43k area forming a very strong support zone along with the bottom of the megaphone.
What to look for:
Once we reach around the $70k area or top of the megaphone, I am expecting a very strong pull back.
Even though there is a lot of accumulation around 48k I think it will blow past that right to $42k after some consolidation.
My reasoning behind this is because if you look at the bull run in 2017 and compare how bitcoin has moved in terms of percentages it is extremely similar.
If you want to look at 2017 you need to scroll all the way back(not log scale).
A 40% correction based on 2017 also lines up pretty much perfect with bitcoins strongest support and resistance now indicating we will have a resistance at $70k then fall to around $42k after.
Look at my idea from Feb. 11th it also shows how we are going to get to $70k, so far following very nicely. And for an alternate situation we could see it stop at $48k and back up if we look at bitcoin based on the 30% correction after $42k high.
Overall:
I want to make it clear that I think it will go to $70k first. Then a correction not a crash of 30% or more likely 40%. After the correction, I am thinking $100-200k.
So still bullish but looking to take profits around $70k.
Comment what you think and follow if you liked the idea.
Also look at the related ideas or click it on the chart.
For more detail on the channel look at my last idea, although, I drew it slightly different there.
