Bitcoin Price Analysis: Bitcoin Poised for a Potentially Large Market Move

in #bitcoin7 years ago

BitcoinPrice3.width-800.jpg

Over the last month, bitcoin has seen large swings in price as the bulls scramble to call the bottom and the bears scramble to call the top of the market. The market saw a 50% retracement a few weeks ago, leading the bullish investors to “buy the dip” only to see it quickly top out and retrace again. Volatility is no stranger to bitcoin and the swings have been violent:
Figure_1_2_15IJLYG.original.jpg
Figure 1: BTC-USD, 2-Hour Candles, Macro Trading Range

Zooming out, we can see the market has been bound within a trading range. Continuing from our previous discussions about the potential of a distribution trading range, we can see bounces decreasing not only in volume but in price volatility. These bounces (labeled “LPSY” for “last point of supply”) give us hints as to the ultimate direction this trend might head. The pink dashed line shows a trend of lower highs that are coupled with overall, decreasing volume indicating that not only is demand drying up, but supply is increasing.

When put in the context of the macro trend, bitcoin appears to be consolidating in a sideways fashion:Figure_2_2_uoCMXak.original.jpg
Figure 2: BTC-USD, 6-Hour Candles, Macro View

The price over the last couple weeks has begun to narrow as the price volatility is decreasing along with the volume. While it could be argued that this type of consolidation represents a “Bear Pennant,” for the sake of neutrality, we can view this as a “symmetrical triangle”:Figure_3_1_NQBflZY.original.jpg
Figure 3: BTC-USD, 6-Hour Candles, Symmetrical Triangle

A triangle of this magnitude would have an approximate $6,500 move. Typically, symmetrical triangles are agnostic and can lead to a bullish or bearish breakout. If this triangle breaks upward, we can expect to see a price target of $22,000 or so. However, if this consolidation pattern breaks to the bottom of the triangle, we can expect to see prices as low as $7,000.
Summary:
Bitcoin is beginning to see decreased volatility as the volume begins to consolidate in the $14,000 values.

A symmetrical triangle is beginning to form that could possibly break upward or downward.

If the symmetrical triangle breaks upward, bitcoin can possibly see prices in the low $20,000s. If the triangle breaks downward, we can expect to see bitcoin test the $7,000s.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

Hope You Like My Post!!
Please Follow Me: @bikinakarmi
Freebitcoin link: https://freebitco.in/?r=4609953
DQmWpisRXDF56mV3DgzzPUxb3R2ozseR48YVr2YKtwtrBcV.gif

Thank You!

Sort:  

Great post! Very well written analysis.

Your Post Has Been Featured on @Resteemable!
Feature any Steemit post using resteemit.com!
How It Works:
1. Take Any Steemit URL
2. Erase https://
3. Type re
Get Featured Instantly – Featured Posts are voted every 2.4hrs
Join the Curation Team Here

Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://thecryptoexchanger.com/bitcoin-poised-for-a-potentially-large-market-move/