So, as you can see, we COULD be looking at a bearish descending triangle pattern for bitcoin. I know that the line of support is not exactly clear, however, support is not a line, it is an area. The key pointer in identifying this pattern is that there have been 3 major lower highs, where bitcoin has failed to pass previous support turned resistance.
Keep in mind the pattern has not completed yet and will only be validated if there is heavy break to under ~$5500, then next support to break is 5k.
If this pattern plays out, expect this bear market to last longer than we have previously expected, as once/IF we break 5k, expect huge red candles until we find the floor, in which we will either bounce to form a V bottom (unlikely at this point) or consolidate very much like the 2014/2015 bear market to build foundations/accumulate for the next bullish cycle.
Please keep in mind that there is no guarantee that a massive break down will happen, in fact positive news in the coming months I hope to have a positive effect on price, however it is probably unlikely as seen to recent price reactions to news in the last few weeks. (ICE, Bitmain, ETFs etc).
NOTE: This does not effect the long term performance of bitcoin at all, many people will refuse to be shaken out and will hold for months/years:
Good luck everyone.
Keep in mind the pattern has not completed yet and will only be validated if there is heavy break to under ~$5500, then next support to break is 5k.
If this pattern plays out, expect this bear market to last longer than we have previously expected, as once/IF we break 5k, expect huge red candles until we find the floor, in which we will either bounce to form a V bottom (unlikely at this point) or consolidate very much like the 2014/2015 bear market to build foundations/accumulate for the next bullish cycle.
Please keep in mind that there is no guarantee that a massive break down will happen, in fact positive news in the coming months I hope to have a positive effect on price, however it is probably unlikely as seen to recent price reactions to news in the last few weeks. (ICE, Bitmain, ETFs etc).
NOTE: This does not effect the long term performance of bitcoin at all, many people will refuse to be shaken out and will hold for months/years:
Good luck everyone.
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For now, 6K looks like the level to watch.
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H1
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Interesting observation: The last two rejections from lower highs drew bitcoin down about 40%, if we get pulled down 40% again, that puts us at 5k historical resistance level (see chart)
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Interesting observation #2: The red horizontal lines on the chart below show instances of when previous resistance was respected and became support. If history were to repeat itself, 5k is the logical support area we need.
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Bounced up 5% in a single 3 minute candle. Some big buys executed.