In the past few weeks BTC has been showing low momentum as it still moves upwards. I am personally convinced it will eventually reach its next target at 100,000$ (it’s the most probable outcome) however, when and how will this happen? Let’s dig into it.
Multi Timeframe Analysis:
The BTCUSD monthly chart looks extremely bullish. Last month closed as a solid bullish engulfing, hinting that the bullish trend on BTC is far from being over…. But nothing moves in straight lines forever, we all know fluctuations exist and we must be aware of them to take advantage of pullbacks when they occur! In this regard we may get lucky very soon as the weekly chart is showcasing signs of exhaustion and deceleration. Which becomes very clear as we drop down to the daily chart.
Here in the daily chart we see that the weekly deceleration is forming an ascending wedge which is by definition a reversal pattern. To spicy it up, MACD is showing bearish divergence. Despite of this, we also know that according to Newton’s laws of physics, an object in motion continues in motion with the same speed and in the same direction unless acted upon by an unbalanced force…. So we may as well just break out of this forming pattern and go straight to test the 100,000$ or to the moon...who knows…
In conclusion all we can do is to prepare and be ready for the different potential scenarios that we may get presented with.
I personally see potential for BTC to retest the 40,000-42,000$ area before reaching the 100,000$ target. If this pullback happens I will be looking to buy more, however, if the price breaks higher with momentum in the next few days, I will just sit on my hands and wait for the market to signal what’s next.
Please feel free to like/follow if you agree or comment below and share your thoughts!
Looking forward to hearing different opinions!=)
Multi Timeframe Analysis:
The BTCUSD monthly chart looks extremely bullish. Last month closed as a solid bullish engulfing, hinting that the bullish trend on BTC is far from being over…. But nothing moves in straight lines forever, we all know fluctuations exist and we must be aware of them to take advantage of pullbacks when they occur! In this regard we may get lucky very soon as the weekly chart is showcasing signs of exhaustion and deceleration. Which becomes very clear as we drop down to the daily chart.
Here in the daily chart we see that the weekly deceleration is forming an ascending wedge which is by definition a reversal pattern. To spicy it up, MACD is showing bearish divergence. Despite of this, we also know that according to Newton’s laws of physics, an object in motion continues in motion with the same speed and in the same direction unless acted upon by an unbalanced force…. So we may as well just break out of this forming pattern and go straight to test the 100,000$ or to the moon...who knows…
In conclusion all we can do is to prepare and be ready for the different potential scenarios that we may get presented with.
I personally see potential for BTC to retest the 40,000-42,000$ area before reaching the 100,000$ target. If this pullback happens I will be looking to buy more, however, if the price breaks higher with momentum in the next few days, I will just sit on my hands and wait for the market to signal what’s next.
Please feel free to like/follow if you agree or comment below and share your thoughts!
Looking forward to hearing different opinions!=)
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