Thanks for taking the time to read my analysis, let’s get into it.
First I want to acknowledge my last analysis on bitcoin did not follow my prediction, as the price of BTC was able to successfully surge past both upper resistance and continued to move higher.
It was the failure to break through this line that would have led to a further fall in price which clearly did not occur.
As we move forward, we notice there is an pattern developing, also known as a right angle pattern.
This pattern is formed when at least 2 reaction highs of nearly equal value form a horizontal line on top and at least 2 or more higher lows form an ascending .
Another typical characteristic of this pattern, is declining as the pattern develops and the must be formed after a prior uptrend is established.
We clearly see all 3 of these characteristics as this pattern if being formed.
Usually this pattern is a and most traders can be prepared for a breakout to the upside. However, we must always be prepared for all scenarios. Therefore, buying at this point could prove to be a costly mistake and instead buy orders should be placed after confirmation of a breakout.
IF the price is able to successfully breakout to the upside, we would like to see an expansion of to confirm the breakout. If confirmed, we can expect a continuation of the bull run to a high of $14,600. This target price is estimated by measuring the greatest distance of the pattern (25.34%) and using that same percent gain above the resistance line.
These are just estimations so please do not use these exact prices after a breakout occurs.
Always be careful of a false breakout, as BUSTS can occur!
If you found my analysis useful to you at all, please show me some support.
I wanted to post another chart here showing the bearish scenarios taking place:
Here you could see we have potentially formed a double top.
A look at the RSI on the 1hr is also showing bearish divergence.
Just keep these things in mind before making any panic buys. Be patient and let's see if this formation leads to the upside.
I hope you saw my update I posted a few hours later (above) which showed a potential double top form as well as a bearish divergence. Once I noticed this, I needed to make sure I was completely out of bitcoin and all my alts and wait for the dump.
I will make a new chart soon predicting our next support levels and potential bounces.