- January 24th, 2022 seemingly found the bottom at $32,917. Setting 3 trendlines with the bottom and finding a higher low.
- The middle trendline finds a valley of resistance before breaking out into upward movements. Seemingly, always having resistance below the line.
- If there is a decline, we will likely see a new higher low (assuming it follows this pattern) of around 38k - with some resistance below the middle line following this pattern until another breakout.
This won't last very long as the valley of resistance is becoming shorter with each higher low.
- After battling that low resistance between 38k and 39k and making a significant move upward to test the top trendline near the 4 peaks of resistance again for the 5th time, we'll very much likely see it test 47k and upward.
Comment:
Assuming 40k and 41k hold it will reset the pattern. It will pump, followed up by volatility, dump an unspecified amount, but still remain as a higher low; develop its valley of resistance and then increase in price again.
Comment:
41 and 40k didn't hold. Now it will test 38k/39k.
Since the bottom, the set set higher low as increased by 2k. If the same pattern does follow, we could see 36k new higher low before the next pump testing the higher high resistance area (top trend line).
Since the bottom, the set set higher low as increased by 2k. If the same pattern does follow, we could see 36k new higher low before the next pump testing the higher high resistance area (top trend line).
Comment:
Stumbling into 37k and regaining support in the higher 37.9k range, the valley of resistance theory is still holding. A higher low can be found in the 36k range of a 2k increase above the last low of 34k. History, therefore, proves 36k is the next lowest, higher-low possible - assuming my valley of resistance theory is correct. Very bullish still.
Comment:
UPDATE on the VALLEY OF RESISTANCE THEORY:
- Still trading above the FIB Retracement 0.382 (38.2k) range, in the upper half between the bottom trendline and the middle trendline.
- Predicting that inside 36k would be the new higher low, it appears as of current it's found it's higher low/support at 37.1k.
- The "Joe Biden Pump" Crypto Executive Order (EO) regarding the regulation of cryptocurrencies brought a pump on the 9th of March from 38.6k to 42.6k (approx.) as it began to, quite soon after, sell back down and trade between to 38.2k/40.3k. (average at around 39k/39.3k).
- The Valley of Resistance theory is still holding, as we wait for the next bullish breakout peaking toward 46.5 and testing that new resistance with a higher high on the top trendline.
- 13 Days long was the first valley of resistance, around 8 days was the 2nd, we're currently sitting at around the 7th day for this final valley of resistance. Predicting that somewhere between the 7th day and the 13th day is when a significant move would happen - ideally to the upside; the downside remains possible however as it could still reach 36k before rising again.
- Still trading above the FIB Retracement 0.382 (38.2k) range, in the upper half between the bottom trendline and the middle trendline.
- Predicting that inside 36k would be the new higher low, it appears as of current it's found it's higher low/support at 37.1k.
- The "Joe Biden Pump" Crypto Executive Order (EO) regarding the regulation of cryptocurrencies brought a pump on the 9th of March from 38.6k to 42.6k (approx.) as it began to, quite soon after, sell back down and trade between to 38.2k/40.3k. (average at around 39k/39.3k).
- The Valley of Resistance theory is still holding, as we wait for the next bullish breakout peaking toward 46.5 and testing that new resistance with a higher high on the top trendline.
- 13 Days long was the first valley of resistance, around 8 days was the 2nd, we're currently sitting at around the 7th day for this final valley of resistance. Predicting that somewhere between the 7th day and the 13th day is when a significant move would happen - ideally to the upside; the downside remains possible however as it could still reach 36k before rising again.
Comment:
Day 12 of the Valley of Resistance. It re-tested the mid trendline, as predicted.
- 3 Days later it tested it again breaking through the resistance. - 22nd March
- After breaking through the middle trendline of resistance it tested the 200EMA resistance fell and converted the middle trendline resistance into bullish support. - 23rd march
- From the middle trendline it worked its way above the 200EMA resistance, fell, and held support again above the 200EMA. - 24th March
- Closing and holding support in the orange triangle is bullish. As you can see, every time it peaked through the middle trendline it was politically motivated and a dump followed as it held no real volume. The "Biden Pump" (Executive Order for crypto regulation) for example (9th march to the 10th march).
- Since, it has followed a reasonable uptrend in which it has tested resistance, broke through a few times and is now finally holding support above the middle trendline. This accumulation of support over the past few days/weeks will prove to be strong enough to continue it's uptrend.
As I'm bullish on bitcoin according to this price-action, It's likely we won't see any dumps strong enough to dip below 40k/41k in the near future (assuming the 200EMA confidently holds support onre more time) unless geopolitical FUD occurs i.e. ukraine/russia/ inflation /IR hikes/national Food shortages etc.
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- 3 Days later it tested it again breaking through the resistance. - 22nd March
- After breaking through the middle trendline of resistance it tested the 200EMA resistance fell and converted the middle trendline resistance into bullish support. - 23rd march
- From the middle trendline it worked its way above the 200EMA resistance, fell, and held support again above the 200EMA. - 24th March
- Closing and holding support in the orange triangle is bullish. As you can see, every time it peaked through the middle trendline it was politically motivated and a dump followed as it held no real volume. The "Biden Pump" (Executive Order for crypto regulation) for example (9th march to the 10th march).
- Since, it has followed a reasonable uptrend in which it has tested resistance, broke through a few times and is now finally holding support above the middle trendline. This accumulation of support over the past few days/weeks will prove to be strong enough to continue it's uptrend.
As I'm bullish on bitcoin according to this price-action, It's likely we won't see any dumps strong enough to dip below 40k/41k in the near future (assuming the 200EMA confidently holds support onre more time) unless geopolitical FUD occurs i.e. ukraine/russia/ inflation /IR hikes/national Food shortages etc.
For future analysis please visit:
