When will BTC come out of the fog?
Updated
Bitcoin holders have been in a fog for the past 2 months. We had a parabolic rise to almost 14k in late June, then the price tanked to 9700 then rebounded to 13200. Up, down, up down, up down. Which direction are we headed?
This reminds me of the first console game called Pong that simulated a table tennis game. It consisted of 2 paddles and the ball would bounce back and forth between the 2 sides. Eventually one of the sides lost when the ball went off the table. Well, that is what is happening to Bitcoin. We are in a downward channel (the table) and the price (ball) is ping ponging back and forth between the two sides of the table. The bears are on top trying to drive the ball lower. The bulls are on the bottom trying to drive the ball higher. Who will win?
We have encountered an obstruction on the table which is the (green dashed) long term trend line. This trend line is preventing the ball from reaching the lower side of the table. It has tried 5 times to get past this trend barrier and has failed. As many of you know, each time the price hits a resistance line the line weakens.
We have 3 possibilities ahead of us.
1) If the price continues to hit this green trend line it will eventually fall through to hit the (red dash) center line which has acted as weak support and resistance in the past. Hopefully we will get a bounce off of this middle line to move the ball back to the upper side of the table (bullish side).
2) If the price falls through the green trend line AND the red middle line then we are headed into what I call the Zombie Zone. This is where the Moon Boys go into shock and will walk around in a daze like the "Walking Dead", to pause briefly to cry in their beer and to reminisce about the good old days when they thought they were headed to Lambo Land. When we get to this zone the Moon Boys will be in a total state of confusion and won't know which direction to go. To buy more? To HODL? Or to curse the day they bought Bitcoin and have wifey force them to sell it off before it goes lower and they lose the house. This is panic time for the Moon Boys. Their dreams are shattered and they will be in total despair.
3) On a happier note, if the price ever breaks out of the descending channel (upper red descending line), we are going to the moon, well, at least into orbit to around 14k. The Bakkt launch on Sept 26th will increase the demand for Bitcoin, since they will settle in real Bitcoin and will be good publicity for Bitcoin for those in the public who thought BItcoin was dead. I am hoping this Bakkt launch will trigger the moon launch. We will have to wait a month and see.
There you have it. With this chart the fog has been blown away and your path has been revealed.
(I have a sudden urge to play ping pong. Game On??)
As always, please do your own due diligence when buying or selling cryptos.
And please don't forget to smash the Like Button on your way out.
This reminds me of the first console game called Pong that simulated a table tennis game. It consisted of 2 paddles and the ball would bounce back and forth between the 2 sides. Eventually one of the sides lost when the ball went off the table. Well, that is what is happening to Bitcoin. We are in a downward channel (the table) and the price (ball) is ping ponging back and forth between the two sides of the table. The bears are on top trying to drive the ball lower. The bulls are on the bottom trying to drive the ball higher. Who will win?
We have encountered an obstruction on the table which is the (green dashed) long term trend line. This trend line is preventing the ball from reaching the lower side of the table. It has tried 5 times to get past this trend barrier and has failed. As many of you know, each time the price hits a resistance line the line weakens.
We have 3 possibilities ahead of us.
1) If the price continues to hit this green trend line it will eventually fall through to hit the (red dash) center line which has acted as weak support and resistance in the past. Hopefully we will get a bounce off of this middle line to move the ball back to the upper side of the table (bullish side).
2) If the price falls through the green trend line AND the red middle line then we are headed into what I call the Zombie Zone. This is where the Moon Boys go into shock and will walk around in a daze like the "Walking Dead", to pause briefly to cry in their beer and to reminisce about the good old days when they thought they were headed to Lambo Land. When we get to this zone the Moon Boys will be in a total state of confusion and won't know which direction to go. To buy more? To HODL? Or to curse the day they bought Bitcoin and have wifey force them to sell it off before it goes lower and they lose the house. This is panic time for the Moon Boys. Their dreams are shattered and they will be in total despair.
3) On a happier note, if the price ever breaks out of the descending channel (upper red descending line), we are going to the moon, well, at least into orbit to around 14k. The Bakkt launch on Sept 26th will increase the demand for Bitcoin, since they will settle in real Bitcoin and will be good publicity for Bitcoin for those in the public who thought BItcoin was dead. I am hoping this Bakkt launch will trigger the moon launch. We will have to wait a month and see.
There you have it. With this chart the fog has been blown away and your path has been revealed.
(I have a sudden urge to play ping pong. Game On??)
As always, please do your own due diligence when buying or selling cryptos.
And please don't forget to smash the Like Button on your way out.
Note
You will notice the price bounced off of the green dotted trend line today. Just when you thought the price was going to tank, it did the exact opposite. A couple of days ago the Fear & Greed index was at 5 and hasn't been this low since AFTER the 6K plunge. Fear was at the extreme. It just goes to show you, the majority is always wrong at the market extremes. That's why it is a good idea to buy when the fear is at the highest and sell when greed is at the highest. And we all need to respect the "long" trend lines that have been around for several months, especially if they are green and have dots in them. LOLIt appears the price is headed to the top of the channel which is around 11.2k (if it gets that far). The bear may then swat the ball back to the other side of the ping pong table. If the bear misses the ball and the ball goes off of the table, then we are going much much higher.
If the price ever does break down through the green trend line, I expect a major dump into the Zombie Zone. So you Moon Boys be careful out there. Don't let the Zombies get you!
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