Bitcoin extra update, Comparing previous Rallies
Updated
I showed these previous highs in my Bitcoin analysis yesterday, now trying to highlight them and see which possible road maps we have for the coming days.
1) The orange one is the most bullish version. This means the bull flag we are in at the moment, has to stay intact. So maybe a max drop to like 5580 and then completing the bull flag.
2) The blue one is the shake out move. Seeing a big violent dump, trigger stops of long positions to fuel a dump, turning sentiment to bearish again. Then after a small bear trap at the low, turning the market around again and continuing the rally.
3) The green one, which is less likely because we have a clear higher high, but nonetheless it is a shape we see more often also in the normal markets.
Now a big difference now and those 2 rallies, alt coins were much stronger and growing during these consolidation phases. This time, alts have been very weak compared to Bitcoin, while outperforming Bitcoin with the previous 2 rallies. That i why i think this market will dump again eventually, but for now i still think we will see another rally before that happens. Think it's still too soon for that.
So at first we have the bull flag with support around max 5580 i think. If that breaks, but we drop without big volume, than version 3 becomes more likely. If we see a more violent drop with high volume, than version 2 is more likely. But of course together with version 2, a completely failure is also possible. So in general, if we don't see high volume drops, there is no reason to think of resuming the bear trend.
We can see the volume on the right. To give an impression, we can see the circled volume a week ago was not enough to break the buyers. So we should assume now, that we need a bigger sell volume candle before we think this rally is already over
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Current Bitcoin analysis:
1) The orange one is the most bullish version. This means the bull flag we are in at the moment, has to stay intact. So maybe a max drop to like 5580 and then completing the bull flag.
2) The blue one is the shake out move. Seeing a big violent dump, trigger stops of long positions to fuel a dump, turning sentiment to bearish again. Then after a small bear trap at the low, turning the market around again and continuing the rally.
3) The green one, which is less likely because we have a clear higher high, but nonetheless it is a shape we see more often also in the normal markets.
Now a big difference now and those 2 rallies, alt coins were much stronger and growing during these consolidation phases. This time, alts have been very weak compared to Bitcoin, while outperforming Bitcoin with the previous 2 rallies. That i why i think this market will dump again eventually, but for now i still think we will see another rally before that happens. Think it's still too soon for that.
So at first we have the bull flag with support around max 5580 i think. If that breaks, but we drop without big volume, than version 3 becomes more likely. If we see a more violent drop with high volume, than version 2 is more likely. But of course together with version 2, a completely failure is also possible. So in general, if we don't see high volume drops, there is no reason to think of resuming the bear trend.
We can see the volume on the right. To give an impression, we can see the circled volume a week ago was not enough to break the buyers. So we should assume now, that we need a bigger sell volume candle before we think this rally is already over
Please don't forget to like if you appreciate this :)
Current Bitcoin analysis:
Note
New Bitcoin analysis:
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