BitcoinLong
BTC reversal or more bleeding...
If we read from left to right, you see the first h&s pattern dropped to the support area which I am classing as the first major support because around the top within the shoulders it is quite messy and rather undefined. There was a 51% drop right there, but once in that area of support (red box) the drop measured 23% (blue box).
Fast forward through the next ath, the next h&s formed. Btc dropped into the area of support, which also measured around the same 23% as the previous drop to support. The percentage was based on the support area and not the drop. Following that drop, Bitcoin rallied to new at the minute around 70k.
Could btc be in for a reversal at this point. Following the green line, brings me to 80k again.
With that said, a bearish case could look like this.
The first h&s drop from the shoulder was 51%, lets say btc is not finished dropping. We would drop from this shoulder 45% (around the same previously). Should that happen, we will drop another 30% to around 28k. Before possibly moving into bear marker…? If this happens, a strong support will be achieved here.
Could this happen and stay here? I do not think so. With all the institutional buyers and whales, to mention one, Michael Saylor. The company now holds a total of 122,478 bitcoins, with an average purchase price of about $29,861.
With that said I do not think they would be too happy to hold $6.9 billion in a reducing asset.
You also have El Salvador who became the first country to adopt a cryptocurrency – in this case, bitcoin – as legal tender. Overall, El Salvador's treasury holds 1,120 bitcoin, according to official data, worth nearly $66 million.
With the mass adoption here I really can not see such a pull back, or if it does happen… it shouldn’t stay there to long.
What is your opinion here, let me know bellow.
This is my own opinion, charting and research, not financial advice.
Fast forward through the next ath, the next h&s formed. Btc dropped into the area of support, which also measured around the same 23% as the previous drop to support. The percentage was based on the support area and not the drop. Following that drop, Bitcoin rallied to new at the minute around 70k.
Could btc be in for a reversal at this point. Following the green line, brings me to 80k again.
With that said, a bearish case could look like this.
The first h&s drop from the shoulder was 51%, lets say btc is not finished dropping. We would drop from this shoulder 45% (around the same previously). Should that happen, we will drop another 30% to around 28k. Before possibly moving into bear marker…? If this happens, a strong support will be achieved here.
Could this happen and stay here? I do not think so. With all the institutional buyers and whales, to mention one, Michael Saylor. The company now holds a total of 122,478 bitcoins, with an average purchase price of about $29,861.
With that said I do not think they would be too happy to hold $6.9 billion in a reducing asset.
You also have El Salvador who became the first country to adopt a cryptocurrency – in this case, bitcoin – as legal tender. Overall, El Salvador's treasury holds 1,120 bitcoin, according to official data, worth nearly $66 million.
With the mass adoption here I really can not see such a pull back, or if it does happen… it shouldn’t stay there to long.
What is your opinion here, let me know bellow.
This is my own opinion, charting and research, not financial advice.
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.