Bitcoin daily 2 feb. estimation of regression end
The currently relevant congestion zones have been updated.
The price did not stay in zone 2 long enough to give a chance for reorientation. Instead it heads toward zone 3 since yesterday and can be expected to settle there.
A spike into zone 4 can be expected until next week. This might end the regression, since zone 4 lies on the 78,6% regression level.
Description of the drawing usage:
All boxes in the diagrams are congestion zones.
Grey boxes are congestion zones from the past. They are the footprints of a market. They act like magnets, making the price prone to revisit them, even in a bull market.
Present and possible future congestion zones are drawm as colored boxes.
Colored slanted lines are trend sections of various time frames.
Colored horizontal lines show when an equally colored trend section is completed for sure, once the price touches such a horizontal line. They are support and resistance levels.
Colored vertical lines which range from top to bottom of the chart mark the end of time frames. Once the price reaches them, an equally colored trend section must have completed already.
Time frames are shown as a scale of vertical lines on daily charts usually.
I think it might stay here or fall till $7000 and then grow upwards. However, I don't feel like BTC is the best backing currency to go back to and ETH will take it's place. Moreover, while ETH is at 1/3 of BTC's market cap, NEO and EOS are the working ICO platforms and they will win out in the long run. Stellar might compete, and ADA just in theory, as they are far behind the former two. I'm skeptical of the place of PoW currencies beyond 2018.
BTC can easily fall further till 7000, yes. There are a lot of bullish indicators on the daily chart already, but that does not mean that BTC will recover instantly.
We will see what the lightening network will do to the BTC price. If it was implemented in 2019 for common use, that would be too late.
ETH will become more interesting once again also with the Raiden network. It failed the krypto kitties test.
Basically each coin which really solves a problem has good chances of making it into 2020. And there are not that many.
When checking POW against POS coins a month ago, i found that POS coins decline in price compared to BTC. That might be because people regularly cash out their POS gains. POW coins rather compete BTC.
But basically POW makes no sense to me. What shall be the service of having demonstrated that a complicated problem was solved by burning lots of energy, which was no problem in the first place ? 10 or 20 years ago computing power was used for brute forcing problems like cancer research. That was useful POW.