This chart does not have my usual indicators on it, because in this case, price action is all you need. Bitcoin has been trading sort of sideways for quite a while, and sideways movement almost always precedes a strong move. Usually, for a stock, ranging represents accumulation, but this is not the case for bitcoin.
The range we have seen during these last months can easily be explained by trading psychology, as the two support levels outlined on the chart represented a lot of hope for HODLers. They all expected that bitcoin will not go below 5000, and as you can see, a lot of people that had cash on the sidelines have been buying aroung 6000, and that is how we got this trading range. Now, because the magic level did not hold, they are rushing out, creating a panic!
There may be further tests around 5000-5500, but I think it is highly probable that in the future, we are going to see total capitulation - 1000$ !
The range we have seen during these last months can easily be explained by trading psychology, as the two support levels outlined on the chart represented a lot of hope for HODLers. They all expected that bitcoin will not go below 5000, and as you can see, a lot of people that had cash on the sidelines have been buying aroung 6000, and that is how we got this trading range. Now, because the magic level did not hold, they are rushing out, creating a panic!
There may be further tests around 5000-5500, but I think it is highly probable that in the future, we are going to see total capitulation - 1000$ !
