As of 2020 Bitcoin has seen a significant rise. Defying the odds and bearish patterns.
As per classical TA this rising wedge should of had us drop down further than we did.
And here is what actually happened.
Instead of a fall back down, we ran up, running into a jungle of resistance. The purple bar above is a very choppy area. Bitcoin has since fallen out. However, my study tells me more of a story. To dive in lets first take a look at 2015.
In 2015 as we came out of the re-accumulation phase, and into the green / bull market zone, we seen a run up right before a return to the lower support line. This was a rejection from the previous resistance/support. Now let’s see our current market.
Bitcoin is being rejected from the previous support / resistance and we may want to re-test to double confirm the lower support before the real push up. It’s the exact set up as 2015. Now, we must remember the game theory involved here. If we see a drop back to the low to mid 7000’s the entire market will be bearish again, people will be in a state of despair. People will be calling for prices of 3000, 1000 and sub 1000. The chats and comments will all be negative again. Dont fall for it! This is the final squeeze to flush out some hands.
Keeping in mind that we have bounce points on the way down, any of which could bring momentum for an up run of varying degrees and also the CME futures gap in the mid 8000’s
This pump that we just had tells us a story. The story is that the market is back in full swing because the ALT market is moving WITH Bitcoin again. The ALT market will fuel the rise of BTC because when traders both long term and short term take profits, they will buy BTC and other high cap coins such as ETH with the profits. Thus, making those coins move up in value, this in-turn attracts new investors and keeps the space growing.
But before we move up, we need the one last shake out, as history rhymes we will have a good chance to buy the real bottom.Tags: Bitcoin, BTC, TA
Categorised in: Technical Analysis
This post was written by BlockAdvisor