Bitcoin (BTC) Update - $8000 scenario? - Technical Analysis January 31st

traincrypto (31)in #bitcoin • 6 years ago (edited)

If you look closely you can see a few patterns starting to emerge, each with probably different scenarios if they play out, which I'll talk about today.
Firstly, my support lines are drawn wick to wick and body to body. If we break through the body to body support then the new channel becomes the wick to wick support line.

First of all let's look at the falling wedge (above). This could suggest that BTC is heading a little further down, wedging the price tighter and tighter, until we break up at the bottom of the wedge. If you take into account the wicks in this scenario and using that channel, we could end up with a $6000 BTC before a bull run, which is what a lot of people have speculated on. To be honest it wouldn't surprise me. Am I worried though? Na.

Secondly, let's look at a descending triangle formation (above). This could actually validate the falling wedge pattern if you follow my red arrows. We end up breaking through the triangle (down) and creating the falling wedge we were talking about above. This essentially plays out similarly to the falling wedge, as we'll still be heading down.

$13049 where I have the white horizontal line, which as you can see providing resistance.

BUT... Because of this we may create a new channel, provided we can break through the upper resistance line on the descending triangle, and not down like I mentioned above. Now if this plays out we could trade in the channel of my upper horizontal line (white) at $13049, and my horizontal line (red) at $9503, which I thought we would get a bounce from the double bottom that formed.

Just as I'm typing this, I can see the RSI turning and getting up into a more neutral zone, which could be a sign that we're gonna head for the descending triangle pattern, finding resistance between $10800 and $11000 before bouncing down to complete the formation.

So in my mind we're still pretty bearish. It's hard to find a really bullish scenario here. I think we'll complete the descending triangle, which will validate the falling wedge, and then we just gotta watch and see how it plays out. I'll have a look at alts to see if I can find some volatile gems for scalping, so I'll be letting BTC do it's thing and play my alts against it.

Patience is still the name of the game! We're inching closer and closer to that trend reversal, we just gotta hold on a bit longer. I'm not gonna comment on the USDT shit, as it's not my area of expertise. I trade charts haha.

Finally, I want to leave you with this. You wanna see what BTC is gonna do next? Go look at the monthly chart. We absolutely MUST close above where we opened or else that MAY signal the absolute top of our grand cycle (end of wave 5), meaning that we are only starting our ABC correction on a grand scale. This is how I came up with a target of $8000, $8075.16 to be precise :D (There is also a scenario for $5000 but I'll leave it for now haha).