Bitcoin bear market CONCLUSION
Updated
First of all, props to redking75. His analysis on Bitcoin MACD inspired me a lot.
Now as you can see, since we started coming down on the 17th of December, this beautifull funneling pattern has developed on the MACD .
Bear market started ---> MACD pattern started
MACD pattern respected for 115 days ---> Price downtrend has indeed lasted 115 days
Today, 12th of April, we brokeout on the MACD funnel pattern. This is a high fidelity indicator of a overall trend reversal ---> Bull market!
Also, the candles from the 4h chart clearly show bear's increasing exhaustion since the 5th of March. RSI level and formation closely resembles the circumstances of September 2015 (beginning of the largest bull market on Bitcoin's history).
Obviously we are to expect a lot of FUD in the next days. Why? Because many guys shorting Bitcoin who were influenced by whales like Poop and DarkEnergy have just lost huge amounts of money. THEY WANT BITCOIN BACK DOWN. Don't let them.
I have nothing against those who shorted, but since we are clearly now forming a bull flag , my advice is to COVER THE SHORTS NOW, and avoid further losses.
To end with a more speculative note, I expect a breakout from the main Bitcoin's downtrend channel until the 25th of April.
People, forget those who present you with they'r daily vomit of worthless ideas based in TA Principles that DON'T WORK with Bitcoin (like Elliot Waves). And for your own sake, cover the shorts now, the risk of greater loss is not worth it.
Now as you can see, since we started coming down on the 17th of December, this beautifull funneling pattern has developed on the MACD .
Bear market started ---> MACD pattern started
MACD pattern respected for 115 days ---> Price downtrend has indeed lasted 115 days
Today, 12th of April, we brokeout on the MACD funnel pattern. This is a high fidelity indicator of a overall trend reversal ---> Bull market!
Also, the candles from the 4h chart clearly show bear's increasing exhaustion since the 5th of March. RSI level and formation closely resembles the circumstances of September 2015 (beginning of the largest bull market on Bitcoin's history).
Obviously we are to expect a lot of FUD in the next days. Why? Because many guys shorting Bitcoin who were influenced by whales like Poop and DarkEnergy have just lost huge amounts of money. THEY WANT BITCOIN BACK DOWN. Don't let them.
I have nothing against those who shorted, but since we are clearly now forming a bull flag , my advice is to COVER THE SHORTS NOW, and avoid further losses.
To end with a more speculative note, I expect a breakout from the main Bitcoin's downtrend channel until the 25th of April.
People, forget those who present you with they'r daily vomit of worthless ideas based in TA Principles that DON'T WORK with Bitcoin (like Elliot Waves). And for your own sake, cover the shorts now, the risk of greater loss is not worth it.
Note
Still plenty of room for further rise in price. When you zoom in it might appear that the MACD has to make a bear cross soon, but bear in mind that our paradigm is now broken, so the prior upper limits of the MACD no longer apply. In the 7th of December the MACD hit a level of 1240 points. Now we are only at 315, so there's a lot of room for us to comfortably pierce the downtrend resistance even before a significant correction. The pump of yesterday has been caused by traders, which recognized the built up pressure on the last two weeks, and also evidently some big buyers.
But what hasn't happened yet, is the entry of new retail investors, since people are scared by bear markets. Now with the publicity that is being made, expect new money to start pouring in to the market in the next weeks. This is what will power our next bull market.
Needless to say, the Bitcoin Shorts bubble has just popped so that will also create added confidence.
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