Bitcoin Trend Reversal seems Plausible
Hi there,
So since the ca. 3k bottom last year Bitcoin as we all know went on a Rise to just under the 14K level which coincided with the close of the monthly candle body of the ATH. Since then the price retraced and it has done so in a Parabolic manner. Using the Fibonacci tool from the low of the last cycle up to the high we can see that right now we are hovering at the exact golden pocket. Also the price is trading inside of a falling wedge pattern visible on the Daily chart.
Recently, the price has managed to close outside of the Weekly parabolic downtrend indicating that sellers are exhausted and current levels are indeed an area of demand.
Personally, I believe that the price has bottomed out and will reverse from here/6.8k onward. I expect the IHS to play out since the parabolic curve has broken and IHS are common reversal patterns especially after parabolic breaks.The extrapolated target of about 9K would then also lead to the break of the falling wedge which has a target of +- 13k which would likely lead to a monthly HH LL structure.
Thus, I am bullish.
The other case scenario would be we resume a downtrend with a target of either 6.1 or 5k. 5k being the exact negative 0.618 of the most recent HTF swing and also the 200 WMA.
For both cases I am prepared accordingly :)
Good Luck
So since the ca. 3k bottom last year Bitcoin as we all know went on a Rise to just under the 14K level which coincided with the close of the monthly candle body of the ATH. Since then the price retraced and it has done so in a Parabolic manner. Using the Fibonacci tool from the low of the last cycle up to the high we can see that right now we are hovering at the exact golden pocket. Also the price is trading inside of a falling wedge pattern visible on the Daily chart.
Recently, the price has managed to close outside of the Weekly parabolic downtrend indicating that sellers are exhausted and current levels are indeed an area of demand.
Personally, I believe that the price has bottomed out and will reverse from here/6.8k onward. I expect the IHS to play out since the parabolic curve has broken and IHS are common reversal patterns especially after parabolic breaks.The extrapolated target of about 9K would then also lead to the break of the falling wedge which has a target of +- 13k which would likely lead to a monthly HH LL structure.
Thus, I am bullish.
The other case scenario would be we resume a downtrend with a target of either 6.1 or 5k. 5k being the exact negative 0.618 of the most recent HTF swing and also the 200 WMA.
For both cases I am prepared accordingly :)
Good Luck
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