Bitcoin: ready for imminent price explosion?
A greeting to readers, some clues suggests the resumption of directionality of the value of Bitcoin. The incredible events that are interesting at international level seem to leave him relatively indifferent.
I am Chronicle of these weeks the warlike intentions of several Asian countries (China and South Korea)
The reasons that these countries lead are different, but the aim seems the same: to limit the brazen spread of payment systems that are not. As always happened, under the control of the various authorities.
At stake there are many things and not by chance the countries that most have shown themselves indispettiti come from the same area of the world.
These are the emerging countries, impeganti countries for several years in strenuous and courageous reform actions in the most diverse sectors. It's a lot of work.
This is happening in the best possible conditions, i.e. to sustained global demand for raw materials, technology, energy.
The Bitcoin could represent for them the disturbing element from a monetary point of view and, knowing how much their balances are also dependent on the non-weakness of their currencies, then must be kept at bay.
Despite the attempts of Bury, the most famous of the criptovalute shows a certain aplomb with the result that, graphically, continues to behave in a disciplined and not schizophrenic.
The prices are now in my opinion in an interesting context because they force him to decide on what strata to undertake in the short term.
We look at the weekly grefico that, as usual, has the advantage of providing us with a vision without the anxieties that afflict the daily operators:
Prices are again in contact with the fastest averages and, if we were to rely on the past behavior, we should expect the retention of values and the resumption of the trend.
But of course I'm just chatting. The boss is the market and you have to listen to even the smallest nuances to try to have the highest probability of being on the right side at the right time. Difficult.
If this were to occur, some calculations could be made: it could achieve an increase of 20% or, at best in the case of a short breath, + 40%.
On the daily chart, the technical moment deserves some consideration, interesting to me.
Since the start of the 2018 is also over the bullish peace.
Interesting to note how the last stretch of the rise, the Christmas to be understood, has occurred with declining volumes. But it could be justified by the festive period.
Vice versa they started to be on average higher in downward movements.
From the last half-month bearish scroll is evident a lateral formation that we could consider a symmetrical triangle.
The formation is accompanied with volumes in progressive drop, typical of this pattern. As typical we expect will be the movement of prices when forced into a cul de sac will have to let us know in which direction it will go.
The direction that could be expected, for all the technical considerations made, should be bullish. Should.
In case this is true it is easy to find at least a couple of targets where prices could go.
The first is area 14,500 represented by the upper part of the bearish channel formed in 2018. With a nice + 20%. The scenario is also subordinate to the necessary rupture of the resistance opposed by the ema50.
Next Target could become the relative highs earlier in area 17,200. The scenario requires the denial of the channel in question and I would say that the assumption of resumption of the trend in this case would be very strengthened.
Last consideration: Sometimes the real rupture of triangles like the one in the picture is preceded by a so-called false rupture, usually happens in the reverse direction compared to where it really has in mind to go the market. So if the scenario envisaged were to take shape we could see the blaze of prices at downwards with possible vision of the minimum relative in area 9,200. Obviously for those who marry the idea of the triangle violated the upside it should be simply an adrenaline rush and just.
However, the alternative scenario that the triangle is broken downwards remains on the table almost as the bullish so it is better to have an idea of operation consistent with the bearish scenario.
In this case, target levels might be in order:
The minimum precedents in area 9,200
Area 8,400 about where the lower part of the bearer channel may cross.
Area 7,900
Area 6,900
What you think about this article?
Please comment and upvote.
By Raffaele Costa