- August 3, 2020
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Bitcoin reached the $12000 Target level I set on my previous analysis with relative ease as it followed this fractal shown below:
What’s next? In my opinion and based on all relative trend-lines involved, it is the $13900 Top made in June 2019!
** Before we start, please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
** Former Resistance turned into Support? **
First of all I will start with the obvious big news made yesterday. After marginally breaking $12000, the price quickly pulled back as most traders who have been (rightly so) accumulating during June/ July, booked their profit. The pull-back stopped exactly on the former 11 month Resistance of $10500. Will it turn into a Support now? If yes, that would be incredibly positive moving forward. So far we see some buying activity, although the price has been mostly consolidating after the initial sharp buying at 10500.
** The dominant pattern **
As seen on the chart, if we ignore the noise of the sharp COVID collapse on March, the pattern that stands out is a Channel Up since late November 2019. It is obvious that the Channel’s median is playing a much important role that its top/ bottom (HH, HL trend-lines) as it has registered (including yesterday) 8 cluster touches, much more than the Higher High/ Higher Low trend-lines. Out of the last 7 times, 5 delivered a pull-back.
** Outsider **
Even though the Channel Up is the dominant pattern, I need to mention the role of the Lower High trend-line starting from the June 2019 $13900 High. Since May 2020, it has supported the price action with numerous touches up until the break-out started on July 21. So even if the Channel Up breaks to the downside, we can see this trend-line coming in for a last-resort Support.
** So what’s the next Target **
As already mentioned, it is the $13900 Top. In fact at the moment, it makes for a perfect technical Higher High for the Channel Up, even though it is more possible to see another monthly consolidation/ accumulation phase before testing this Resistance, if the trading interest in August is low.
So wouldn’t you agree with the ~14k target? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!