- September 27, 2019
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
This is just a quick analysis of what this week’s strong rejection can mean for BTC if indeed we are repeating the main fractal of the 2018 bear market.
First of all I am not a fan of this formation as we are comparing two periods under largely different parameters. The first was a whole Bear Market span. The second is currently only the start of the new Bull Market.
However. We do need to consider the following parameters that have been developed already or are in the process to.
#1 It is the first time the price got truly detached from the 1D MA50.
#2 First time also it crossed below the MA200 (even marginally by this chart’s standards).
#3 Nearly reached the low point of the volatile formation before the peak (indicated with the blue ellipse shape).
So all the above are common factors on both patterns. Under these parameters we may assume that Bitcoin will follow the rest of the pattern (the length unknown) up to a point of a new aggressive sell off to test the low point of the previous volatile formation (indicated with the yellow ellipse shape) which is roughly around $5000. When can that bottom be? It is anybody’s guess but the Halving date can serve just right this purpose before the second bullish phase of the current Bull Market starts.
What do you think? Is this another crazy fractal or there can be some relevance to it? Please like, subscribe and share your comments, your ideas and charts with me!