Bitcoin - Following a classic pattern
Updated
So far since recent lows, bitcoin is following a classic pattern. Trend channels are clearly defining price movement. The bull move up from recent lows is retracing. Standard retracement zone is between 31.8% and 61.2%. Most retracements in a bull market end in these areas. And, if we are to play the leg up as a resumption of the BTC bull, this is important. Look at where the green declining trend channel meets the yellow inclining one. Notice that the entire area where they meet is within the most common fib retracement zone. This is the most likely scenario for where a the retracement stops and a new bull leg begins.
Could we head lower to new lows? Of course.
Could we head higher without touching the yellow trendline? Of course.
Trading is about possibilities, managing risk, and having a psychology that allows you to see the forrest through the trees. And there are always alot of trees. My advice, buy a drone and get a better view. ;)
Could we head lower to new lows? Of course.
Could we head higher without touching the yellow trendline? Of course.
Trading is about possibilities, managing risk, and having a psychology that allows you to see the forrest through the trees. And there are always alot of trees. My advice, buy a drone and get a better view. ;)
Note
We have a bullish reversal/breakout of the upper short term bearish channel! This is a very solid development for the bulls if not reversed quickly by the bears. We didnt even get all the way down to the bottom yellow trendline! This brings the bullish head and shoulders potential pattern that I am sure you all have seen clearly in front as the leading option on the table.
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