Bitcoin's back on track?
Updated
After a corrective wave, bitcoin appears to be back on the track it was in prior to the December rally; that unhealthy growth I talked about in my past idea.
Technicals:
BTC Double bottomed and broke out of its temporary downtrend channel, turning its resistance into a support.
The area labled "STRONGEST SHORT TERM RESISTANCE" is an area to watch for bitcoin, if it's able to break through it and maintain above it we would have broken the neckline of the head and shoulder pattern mentioned in my last analysis, which would put us on a bullish trend. I would expect for bitcoin to consolidate around the 0.786 fib levels in preparations for its next rally towards our target.
The red arrow is a pointer to the possibility of continuation of downtrend as it is a zone where institutional traders could take profit.
Fundamentals and Sentiment Analysis:
Possible volume catalysts:
Segwit2x x11 is forking at block 501451 : December 28th
Bitcoin Uranium Fork : December 31st.
Bitcoin Cash Plus : January 2nd
Lightning Network RC1 has been released and main net tx's have been completed.
As most of us know, when bitcoin begins to rally the alt coins bleed, with the possibility of people obtaining all these forks lots of volume will exit the alts, which could potentially cause a domino effect and bring most of that volume that exited during the correction back onto bitcoin.
The psychological resistance I added is one I believe we will easily break but after some fighting.
Technicals:
BTC Double bottomed and broke out of its temporary downtrend channel, turning its resistance into a support.
The area labled "STRONGEST SHORT TERM RESISTANCE" is an area to watch for bitcoin, if it's able to break through it and maintain above it we would have broken the neckline of the head and shoulder pattern mentioned in my last analysis, which would put us on a bullish trend. I would expect for bitcoin to consolidate around the 0.786 fib levels in preparations for its next rally towards our target.
The red arrow is a pointer to the possibility of continuation of downtrend as it is a zone where institutional traders could take profit.
Fundamentals and Sentiment Analysis:
Possible volume catalysts:
Segwit2x x11 is forking at block 501451 : December 28th
Bitcoin Uranium Fork : December 31st.
Bitcoin Cash Plus : January 2nd
Lightning Network RC1 has been released and main net tx's have been completed.
As most of us know, when bitcoin begins to rally the alt coins bleed, with the possibility of people obtaining all these forks lots of volume will exit the alts, which could potentially cause a domino effect and bring most of that volume that exited during the correction back onto bitcoin.
The psychological resistance I added is one I believe we will easily break but after some fighting.
Note
It bounced off our resistance, it appears to be in a bearish pennant or even a rising wedge. Will keep an eye on it, could possibly close out trade manually 16.2k.
There's now a really high possibility of downtrend.
Good luck to all!
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