Bitcoin: its not done yet
Updated
Hello All,
I wanted to talk about bitcoin and its current price action. I know that I have said that the price of 9550 is a wall, but I believe we will be blowing through it sooner rather than later. The reason why I believe this is that price action currently looks like it is forming a cup and possibly a handle, it is possible for this to simply form a cup and take off. But it is important that the 9380 region holds as support, if it doesn't, and we make moves down, I suspect that this could be some type of topping pattern such as a head and shoulder or a diamond top. If this is some sort of diamond top, it is possible that it is a half-staff instead which is a continuation pattern. The head and shoulder top is represented by the yellow marks, and I would be looking for a drop to the lower portion of the channel for the RSI. Overall, if this is a top, I would be looking for movements to 7900-8300, this is because it does appear like there is a strong chance of another inverted head and shoulder forming on the larger time frame. I am in favor of this being a cup and handle. The price objective of the cup and handle is around 10000
Synopsis:
Arguments For the Head a Shoulder and what to look for:
Arguments For the cup and handle and what to look for:
Best of luck and Stay Technical!
Previous Analysis:
I wanted to talk about bitcoin and its current price action. I know that I have said that the price of 9550 is a wall, but I believe we will be blowing through it sooner rather than later. The reason why I believe this is that price action currently looks like it is forming a cup and possibly a handle, it is possible for this to simply form a cup and take off. But it is important that the 9380 region holds as support, if it doesn't, and we make moves down, I suspect that this could be some type of topping pattern such as a head and shoulder or a diamond top. If this is some sort of diamond top, it is possible that it is a half-staff instead which is a continuation pattern. The head and shoulder top is represented by the yellow marks, and I would be looking for a drop to the lower portion of the channel for the RSI. Overall, if this is a top, I would be looking for movements to 7900-8300, this is because it does appear like there is a strong chance of another inverted head and shoulder forming on the larger time frame. I am in favor of this being a cup and handle. The price objective of the cup and handle is around 10000
Synopsis:
Arguments For the Head a Shoulder and what to look for:
- Continuation of the descending channel on the RSI and either a rejection at the top of the channel or a rejection below it. If there is a rejection below it, then, it most likely means that the selling has accelerated.
- Volume remains stagnant or volume increases as price moves downward
- 9380 region does not hold as support (it is possible that price moves down once more and to consolidate more, before making upward movement, I will post an idea on this if it is the case)
Arguments For the cup and handle and what to look for:
- It breaks through the upper trendline of the descending channel on the RSI
- 9380 region holds as support and continues to make upward movements on volume that is slightly increasing
- The right half continues to maintain its roundness
Best of luck and Stay Technical!
Previous Analysis:
Note
I wanted to update this idea with the fact that this has shown itself completely as a pattern which I have mentioned in this analysis already. This appears like it is a diamond pattern which may act as either a continuation pattern or a reversal, however, it will be difficult to tell which one it will be acting as:Note
Contrary to the title, the market looks like it is done for the moment. Look for 8600, 8300 and 7900 for points of reversal!
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