Ok guys today we decided to look at the bigger picture rather being discouraged by the present bearish bias of #BTC.
Note that #BTC as of now remains bearish, the head and shoulder pattern is still very much in play both on the 4 hour and daily.
Moreover, the SECs decision on the ProShares ETF proposal in two days time could moon or break #BTC price from current position.
In July this year, the news of the CBOE ETF filing lead to a breakout above and a continuation of the inverse head and shoulder formation on the daily chart back then.
The chances of this ETF being approved is slim, so a disapproval could result in a breakdown of this present sideways move thus leading to a continuation of the head and shoulder pattern, and when this happens we could see a retest of previous lows.
That said, back to todays chart........
#BTC reached it peak of $1170 on 1st of Dec 2013 which was immediately followed by a downtrend.
Price formed four consecutive higher lows, and three lower low bottoms. The third bottom was a double bottom which was followed by a rally, and a correction. This correction brought a fouth bottom which was a lower high followed by a period of consolidation.
The same scenerio seems to be playing out here, the present BTC daily chart has a four consecutive higher low tops, and three lower low bottoms with the third bottom being a double bottom and the fourth bottom being a lower high bottom and also presently consolidating.
The 2013/2014 bear market crash actually resumed its uptrend after a very long and boring sideways move on the 13th of oct 2015 when price final moved above the 200 day moving average. Price since then found support on the 200 day MA and the 4th trendline support of the pitch fork and gradully moved up until price reached its apex of $20k in Dec 2017 (28 months uptrend, 17 months sideways movement with little dips here and there, 6 months downtrend).
Right now, #BTC is still finding a bottom with many predicting a $5k or $4k bottom. One thing is certain, and that is, #BTC is already in it bottom area, and the sideways move began immediately after the capitulation we experienced few days back.
We will see little dips here and there, and price may even go below previous lows during this sideways move. But i believe the worst has already happened, so dont expect much dip below previous low if price ever breaks that support area ($5800-$5775).
Again dont expect the sideways move of this present cycle to be as long as that of the 2013/2014, this is because the 2013 market crash was followed by a much worse situation which was the MtGox exchange hack, the only major exchange back then.
Moreover, there was not much awareness and media coverage of crypto space back then, so interest in crypto was low, due to associated risk.
But the situation is diffrent now, institutions, public, govt etc are all interested in crypto now, more projects coming out, scaleability, custodial solutions, more exchanges and other strong fundamentals are presently driving the crypto space now as opposed to 2013/2014 era.
I believe what is keeping the market down now is regulations and this should be out latest Oct 2018 according the last G20 summit report.
In addittion, BAKKT will be launching a crypto exchange by Nov 2018, their aim is actually to get cryptocurrencies to main stream, and this and many more strong fundamentals should short live the present sideways move, and an uptrend should finally begin by Oct/Nov this year IMO.
In our next post, we will share some facts backed by chart analysis to show to you all that #BTC has already found a buttom, and whatever dip you see during this sideways move will not be far from previous lows if we cross those lows. Stay with us
Note that #BTC as of now remains bearish, the head and shoulder pattern is still very much in play both on the 4 hour and daily.
Moreover, the SECs decision on the ProShares ETF proposal in two days time could moon or break #BTC price from current position.
In July this year, the news of the CBOE ETF filing lead to a breakout above and a continuation of the inverse head and shoulder formation on the daily chart back then.
The chances of this ETF being approved is slim, so a disapproval could result in a breakdown of this present sideways move thus leading to a continuation of the head and shoulder pattern, and when this happens we could see a retest of previous lows.
That said, back to todays chart........
#BTC reached it peak of $1170 on 1st of Dec 2013 which was immediately followed by a downtrend.
Price formed four consecutive higher lows, and three lower low bottoms. The third bottom was a double bottom which was followed by a rally, and a correction. This correction brought a fouth bottom which was a lower high followed by a period of consolidation.
The same scenerio seems to be playing out here, the present BTC daily chart has a four consecutive higher low tops, and three lower low bottoms with the third bottom being a double bottom and the fourth bottom being a lower high bottom and also presently consolidating.
The 2013/2014 bear market crash actually resumed its uptrend after a very long and boring sideways move on the 13th of oct 2015 when price final moved above the 200 day moving average. Price since then found support on the 200 day MA and the 4th trendline support of the pitch fork and gradully moved up until price reached its apex of $20k in Dec 2017 (28 months uptrend, 17 months sideways movement with little dips here and there, 6 months downtrend).
Right now, #BTC is still finding a bottom with many predicting a $5k or $4k bottom. One thing is certain, and that is, #BTC is already in it bottom area, and the sideways move began immediately after the capitulation we experienced few days back.
We will see little dips here and there, and price may even go below previous lows during this sideways move. But i believe the worst has already happened, so dont expect much dip below previous low if price ever breaks that support area ($5800-$5775).
Again dont expect the sideways move of this present cycle to be as long as that of the 2013/2014, this is because the 2013 market crash was followed by a much worse situation which was the MtGox exchange hack, the only major exchange back then.
Moreover, there was not much awareness and media coverage of crypto space back then, so interest in crypto was low, due to associated risk.
But the situation is diffrent now, institutions, public, govt etc are all interested in crypto now, more projects coming out, scaleability, custodial solutions, more exchanges and other strong fundamentals are presently driving the crypto space now as opposed to 2013/2014 era.
I believe what is keeping the market down now is regulations and this should be out latest Oct 2018 according the last G20 summit report.
In addittion, BAKKT will be launching a crypto exchange by Nov 2018, their aim is actually to get cryptocurrencies to main stream, and this and many more strong fundamentals should short live the present sideways move, and an uptrend should finally begin by Oct/Nov this year IMO.
In our next post, we will share some facts backed by chart analysis to show to you all that #BTC has already found a buttom, and whatever dip you see during this sideways move will not be far from previous lows if we cross those lows. Stay with us
