BTC must go down before we go up
Updated
Good morning everyone,
In this very manipulated market, it is difficult to try to fully understand what is going to happen with BTC in the coming weeks. For me, I believe I have an idea. First and foremost, I have been tracking the development of a cup and handle formation for the last few days. Within the cup, you can see a ascending wedge has formed since the turn around of BTC. With the manipulation of the market, you can see that there has been a few false breakouts, compliments of the whales of BTC. Regardless, we have experienced classic resistance and support with this triangle after the false breakouts, confirming these were indeed just false breakouts. Since ascending wedges normally breakout towards the downside, this a perfect chance for the handle of this formation to start taking shape. I expect to see a retraction of about 50%. This would place the bottom of the handle right at the support level between $8000-$8100. We have a chance of going all the way down to 63% retraction and test the downtrend line. I highly doubt this takes place because of all the support at $8,000, but it is a possibility to be aware of. If the handle begins to form, the target profit would be just shy of $12,000.
In summary, I am bearish short term on BTC until we see the completed formation of the handle. After, I become extremely bullish long term.
Cheers
In this very manipulated market, it is difficult to try to fully understand what is going to happen with BTC in the coming weeks. For me, I believe I have an idea. First and foremost, I have been tracking the development of a cup and handle formation for the last few days. Within the cup, you can see a ascending wedge has formed since the turn around of BTC. With the manipulation of the market, you can see that there has been a few false breakouts, compliments of the whales of BTC. Regardless, we have experienced classic resistance and support with this triangle after the false breakouts, confirming these were indeed just false breakouts. Since ascending wedges normally breakout towards the downside, this a perfect chance for the handle of this formation to start taking shape. I expect to see a retraction of about 50%. This would place the bottom of the handle right at the support level between $8000-$8100. We have a chance of going all the way down to 63% retraction and test the downtrend line. I highly doubt this takes place because of all the support at $8,000, but it is a possibility to be aware of. If the handle begins to form, the target profit would be just shy of $12,000.
In summary, I am bearish short term on BTC until we see the completed formation of the handle. After, I become extremely bullish long term.
Cheers
Comment
It appears we have started forming the handle for the cup and handle formation. With the added break of the uptrend line formed by the lows of 4/11 and 4/26, this makes me feel more confident in the retraction to $8,000. In the next few days/weeks, we should see this handle form completely and then hopefully up to the target profit!Comment
With the rejection of a break above the cup's top on 5/5, we have fallen to an almost exact target just below the 50% retraction. Target profit of $11,500-$12,000 still in tact!
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