Bitcoin had a steep rise that brought his value from about 2’000 USD at the beginning of August 2017 to almost 20’000 in December 2017. In few months the value has grown by 10 times! Soon after reaching the top, a sudden drop started. Despite of the alarmist prophecies, a bearish period is normal. In few days BTC dropped to 11’000, the precise middle point between 20’000 and 2’000. Therefore BTC retraced at about the 50% of its growth from August to December.
Since the 20’000 peak, BTC seems to be in a continuation pennant pattern, highlighted in violet in the graph. Therefore, BTC might start a new climb soon. However, the graph highlights the completion of a rising Elliot impulse wave pattern as well, meaning that a downtrend could have started and is going to continue for several weeks.
To understand the direction of BTC, we can rely on the pennant:
- if the pennant acts as continuation pattern, BTC can break the resistance of the pennant and rise up above 20’000;
- if its support is going to be broken, the downtrend will start again and BTC could test the 50% retracement for a second time. In this situation a descending flag is expected to be created.
https://cryptocoin4cast.com/2018/01/09/bit_cont_pattern/
Since the 20’000 peak, BTC seems to be in a continuation pennant pattern, highlighted in violet in the graph. Therefore, BTC might start a new climb soon. However, the graph highlights the completion of a rising Elliot impulse wave pattern as well, meaning that a downtrend could have started and is going to continue for several weeks.
To understand the direction of BTC, we can rely on the pennant:
- if the pennant acts as continuation pattern, BTC can break the resistance of the pennant and rise up above 20’000;
- if its support is going to be broken, the downtrend will start again and BTC could test the 50% retracement for a second time. In this situation a descending flag is expected to be created.
https://cryptocoin4cast.com/2018/01/09/bit_cont_pattern/