As the chart is pretty self explanatory I will be brief.
As we all know the one true "pillar" of TA that has stood the test of time is that resistance becomes support and support becomes resistance. Almost always. The higher the time frame, the more likely the price action will follow this rule. Based on this, I have drawn several trend lines that lead me to believe that we have still not bottomed out and in fact have some more downside ahead of us.
In light of this, here are my price action predictions, accompanied with some fundamentals:
Short term: we will 100% have a move up, the RSI is stupidly overextended to the downside and while we may have some more room to fall I expect that once we hit 5, 5.1k a bounce for Bitcoin and the whole market is inevitable. We may have a rally to 6k but since it was such a strong support it is highly likely we won´t be able to break it.
Mid - term: 5.8-6k was a very important support that held for literally the entire year until now. Because of this it is likely we have not seen the bottom yet. Once a mayor support level breaks (and we had a very very decisive break) a mayor sell off occurs in the next few days and weeks and severly shifts the bias from neutral/bullish to bearish. Based on this chart I expect we will bottom out at 4 - 4.5k. Note: remember that christmas and the holidays are coming, which usually means a lot of money flows out of the market. This goes hand in hand with the above posted analysis.
Long term: Extremely bullish. Accompanied with the fundamentals (Bakkt, ICE, possible ETF) and the chart I think that by February 2019, things will start to explode. To the upside. Make sure to buy as much as you can of everything until then.
Will try to provide another piece of evidence as to why I believe we have some more room to fall later.
Thank you.
As we all know the one true "pillar" of TA that has stood the test of time is that resistance becomes support and support becomes resistance. Almost always. The higher the time frame, the more likely the price action will follow this rule. Based on this, I have drawn several trend lines that lead me to believe that we have still not bottomed out and in fact have some more downside ahead of us.
In light of this, here are my price action predictions, accompanied with some fundamentals:
Short term: we will 100% have a move up, the RSI is stupidly overextended to the downside and while we may have some more room to fall I expect that once we hit 5, 5.1k a bounce for Bitcoin and the whole market is inevitable. We may have a rally to 6k but since it was such a strong support it is highly likely we won´t be able to break it.
Mid - term: 5.8-6k was a very important support that held for literally the entire year until now. Because of this it is likely we have not seen the bottom yet. Once a mayor support level breaks (and we had a very very decisive break) a mayor sell off occurs in the next few days and weeks and severly shifts the bias from neutral/bullish to bearish. Based on this chart I expect we will bottom out at 4 - 4.5k. Note: remember that christmas and the holidays are coming, which usually means a lot of money flows out of the market. This goes hand in hand with the above posted analysis.
Long term: Extremely bullish. Accompanied with the fundamentals (Bakkt, ICE, possible ETF) and the chart I think that by February 2019, things will start to explode. To the upside. Make sure to buy as much as you can of everything until then.
Will try to provide another piece of evidence as to why I believe we have some more room to fall later.
Thank you.