BTC showing signs of Trend Reversal
Updated
If any of you have seen my comments around here, you know that I'm no Bitcoin Shill... In fact, I pretty much detest the stuff. But the facts remain. The perceived value of BTC still directly correlates to the price action of all other coins and tokens. As asinine as it is that we all trust and believe in a coin which is centralized in China, owned by a couple of Billionaires, and is based in a country which is openly hostile towards all Cryptocurrency, the price of our superior tokens will not increase until the price of BTC stabilizes or increases.
Anyway, that's what I perceive the charts are telling us now. What we have here is an Inverted Head and Shoulder's pattern. If this pattern is confirmed, we will see a "bullish" reversal of this trend. Which I'm sure you've been enjoying. We see that the pattern is validated by volume and RSI. We are currently nearing the Apex of the Right Shoulder. We should soon expect to see a test occur at the neckline.
I anticipate heavy resistance at the neckline, which is also a Fibonacci level. IF this line of resistance can be pushed through we will see the price of BTC increase to $11,000 and possibly follow the chart as I've drawn it.
If BTC FAILS to break through this key resistance level I would very much anticipate the price of BTC to decrease further. Falling below the prior "lows" and possibly continuing the downtrend towards $1,200... Which is honestly probably about where we should be valuing BTC anyway.
What we should NOT be doing is thinking that just because the value of BTC crashes it means that our "alts" (superior coins) should also decrease in value. Ideally they should be valuated completely independently of each other and all other coins. But that's not the world we live in... yet. The arrival of that day is the day that BTC will have exhausted its final use-case and we can finally bury it with honors. A great proof of concept. A profound example of everything which can go wrong with DLT. And, hopefully, we can all learn from its failure and understand how to avoid those traps.
Personal biases aside, BTC looks like it's on the road to a rebound...
Anyway, that's what I perceive the charts are telling us now. What we have here is an Inverted Head and Shoulder's pattern. If this pattern is confirmed, we will see a "bullish" reversal of this trend. Which I'm sure you've been enjoying. We see that the pattern is validated by volume and RSI. We are currently nearing the Apex of the Right Shoulder. We should soon expect to see a test occur at the neckline.
I anticipate heavy resistance at the neckline, which is also a Fibonacci level. IF this line of resistance can be pushed through we will see the price of BTC increase to $11,000 and possibly follow the chart as I've drawn it.
If BTC FAILS to break through this key resistance level I would very much anticipate the price of BTC to decrease further. Falling below the prior "lows" and possibly continuing the downtrend towards $1,200... Which is honestly probably about where we should be valuing BTC anyway.
What we should NOT be doing is thinking that just because the value of BTC crashes it means that our "alts" (superior coins) should also decrease in value. Ideally they should be valuated completely independently of each other and all other coins. But that's not the world we live in... yet. The arrival of that day is the day that BTC will have exhausted its final use-case and we can finally bury it with honors. A great proof of concept. A profound example of everything which can go wrong with DLT. And, hopefully, we can all learn from its failure and understand how to avoid those traps.
Personal biases aside, BTC looks like it's on the road to a rebound...
Note
In the field labeled "Major resistance" we can see that BTC is finishing the formation of a Cup and Handle. This is another bullish indicator that the market is on its way to recovering as a whole.If the pattern completes itself we will see some green candles for a few days. I'd suggest picking your coins and holding on. If you have USDT or fiat in your exchange accounts, observe carefully and wait for breakout and set your buy orders.
This could be the moment.
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