Disclaimer: This is what I see in the charts and is not official trading advice. If you don't like TA, don't bother. If you do, I advise you think and read critically. DYOR and only make trades on your own accord. Invest safely.
Here we go!
Chart: https://www.tradingview.com/x/0cUVpS12/
Welcome to my technical analysis on Bitcoin. As you can see on the chart, we have seen a little run-up in the past few hours. The MACD looks like it wants to form a bullish crossover and the RSI is recovering from its oversold territory. Although we have seen a little buying power, I want to tell you why I think this is a bull-trap. Firstly, we have fallen back inside of a downtrend channel that we broke out of. That is a very bearish sign and you should be worried about preserving your capital right now. While you could see the RSI recovery as a good thing, I actually believe it is setting us up for more failure. Because the RSI is now back inside the safe area, it gives us room to move further down without technically being in "oversold" territory. MACDs must actually complete a crossover to be considered bullish, however they are lagging indicators and do have a tendency to roll over unexpectedly. Combine that with the fact that we have much lower buying volume than selling volume and you have a recipe for disaster. Bitcoin is currently consolidating within a bear flag. It started pushing the upper boundary, but fell back in shortly after. We fell sharply in a day, so it was necessary for us to recoup some of the losses. However, if this pattern holds true, BTC will likely tumble under $8000 again. My target price is between $7000-$7200 for the bear flag. I will have a narrower target if the flag breaks out. If it falls below that, my next Fibonacci level is back where we were after the initial January crash.
Now, here's my bold prediction for the future of crypto (this is based on a series of technical analyses and my own intuition; this is purely hypothetical whereas my technical analysis above is based on real price action data):
BTC will crash to $6000 within the next few days. We will hit a double bottom, which is a major bullish pattern, and see a significant bounce. Within the next three months, we will see a return to ATH for many altcoins. I am seeing a bunch of falling wedge patterns with massive upside. Of course, this is all dependent on whether or not the BTC and altcoins can achieve breakouts on high volume, but again, this is purely hypothetical.
Thanks for reading. Good luck and happy trading! :)
Update: An interesting development has been brought to my attention. There is actually a massive hammer on high volume with a potential bull flag on the daily chart. The bulls are attempting to breakout right now. This is in conflict with my 4-hour chart bear flag. Let's see who wins out.
Update: Still incredibly low volume from the bulls. Just a lot of back and forth right now. I would be surprised if the bulls manage to break out at this point.
[link] [comments]
from Cryptocurrency news and discussions. http://ift.tt/2oXrbyS
No comments: