My MID TERM target on Bitcoin is at least $12.5K. This is based on:
1. Technical analysis: large double top formation, and flag formation (yellow channel) I do think price will go even lower, but $12.5K is minimum just based on technical set up of the chart.
2. Macro environment: higher rates and tightening of liquidity by FED - risk assets taking a hit, Bitcoin being one of them.
But, in the SHORT TERM timeframe there still is a possibility of a $29-$30K range retest before going lower. Here is why I think that:
1. Price for the 2nd time this year is testing $19k - significant level, as it’s 2017 bull market high. Significant levels act as support/resistance and usually are hard to break thru (takes time).
2. Price formed a channel (blue channel) which look like a smaller version of a yellow flag channel and market participants might be expecting same outcome (downside move), but can be caught of guard with a short term upside move instead.
If there is a breakdown below $19k, it would be sign of extreme weakness, which is possible considering macro environment. But I am not fully convinced of a straight move to $12K range, even though I believe price will reach there eventually.
1. Technical analysis: large double top formation, and flag formation (yellow channel) I do think price will go even lower, but $12.5K is minimum just based on technical set up of the chart.
2. Macro environment: higher rates and tightening of liquidity by FED - risk assets taking a hit, Bitcoin being one of them.
But, in the SHORT TERM timeframe there still is a possibility of a $29-$30K range retest before going lower. Here is why I think that:
1. Price for the 2nd time this year is testing $19k - significant level, as it’s 2017 bull market high. Significant levels act as support/resistance and usually are hard to break thru (takes time).
2. Price formed a channel (blue channel) which look like a smaller version of a yellow flag channel and market participants might be expecting same outcome (downside move), but can be caught of guard with a short term upside move instead.
If there is a breakdown below $19k, it would be sign of extreme weakness, which is possible considering macro environment. But I am not fully convinced of a straight move to $12K range, even though I believe price will reach there eventually.
