Bitcoin Re-Accumulation
Updated
I believe that Bitcoin has broken its parabolic uptrend and has now entered a period of re-accumulation, during which BTCUSD will trade within a converging pennant.
I do not believe BTC will break below this pennant, as I feel that general sentiment currently in favor of buying dips rather than shorting. Medium term momentum is also still bullish.
I also do not believe that BTC will break above this pennant in the near future, as the recent parabolic uptrend has rendered BTCUSD overheated and in need of consolidation before it is strong enough to continue its uptrend.
During this period of consolidation, I believe that there is a chance that alt-coins could potentially rally. Once the pennant on BTC has converged to a certain extent (I do not know to what extent specifically), BTC will have consolidated enough to push to new highs in the 10,000+ range. At this point, previous highs from March of 2018 could potentially be tested.
That being said, BTC could break above or below this pennant at any point.
I do not own any Bitcoin at the time of writing (June 8, 2019).
I do not believe BTC will break below this pennant, as I feel that general sentiment currently in favor of buying dips rather than shorting. Medium term momentum is also still bullish.
I also do not believe that BTC will break above this pennant in the near future, as the recent parabolic uptrend has rendered BTCUSD overheated and in need of consolidation before it is strong enough to continue its uptrend.
During this period of consolidation, I believe that there is a chance that alt-coins could potentially rally. Once the pennant on BTC has converged to a certain extent (I do not know to what extent specifically), BTC will have consolidated enough to push to new highs in the 10,000+ range. At this point, previous highs from March of 2018 could potentially be tested.
That being said, BTC could break above or below this pennant at any point.
I do not own any Bitcoin at the time of writing (June 8, 2019).
Note
Final Verdict:I eventually modified my idea to predict a breakout above the pennant at a sooner date than originally anticipated.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.