Hello crypto friends,
While Bitcoin is breaking resistance after resistance I want to show you a comparative analysis of the accumulation patterns after correction before bullish price increase.
As you noticed, the price has been in the downward channel since the summer of 2019:
Price is testing the upper boundary of the channel now.
Until Bitcoin hasn't broken through this channel with a large volume green candle, as it was in 2019, I regard current price movements as an unfinished accumulation phase. Which means we can still see prices at 7K in the very near future:
My idea is that the accumulation phase is not yet completed.
Many factors indicate this - time, similar patterns, market weakness. You can see weakness in divergence of price and oscillators in front of important resistance, as well as increased volatility, which also indicates the indecision of many traders what direction the price will choose.
As history shows, Bitcoin's accumulation phase ends with a fall in volume and volatility, when market comes to a balanced state - this is usually a very boring period, where a $100 movement is regarded as a very significant event. Do you remember 2018-2019 when Bitcoin was in the 3-4K ranging zone?
What will happen next the price will tell.
This idea is not a financial advise, but you probably know that already ;)
While Bitcoin is breaking resistance after resistance I want to show you a comparative analysis of the accumulation patterns after correction before bullish price increase.
As you noticed, the price has been in the downward channel since the summer of 2019:
Until Bitcoin hasn't broken through this channel with a large volume green candle, as it was in 2019, I regard current price movements as an unfinished accumulation phase. Which means we can still see prices at 7K in the very near future:
Many factors indicate this - time, similar patterns, market weakness. You can see weakness in divergence of price and oscillators in front of important resistance, as well as increased volatility, which also indicates the indecision of many traders what direction the price will choose.
As history shows, Bitcoin's accumulation phase ends with a fall in volume and volatility, when market comes to a balanced state - this is usually a very boring period, where a $100 movement is regarded as a very significant event. Do you remember 2018-2019 when Bitcoin was in the 3-4K ranging zone?
What will happen next the price will tell.
This idea is not a financial advise, but you probably know that already ;)