Bitcoin Confirms Bullish Breakout...Small Correction before Next Wave Up
Yesterday I stated we needed to see Bitcoin close above the descending triangle, on at least the 4hr chart, in order to confirm an uptrend. It now has not only closed above on the 4hr and daily, it also has broken out of the descending triangle on the MACD histogram.
This is a good sign. In the short term, we might see a pullback, possibly to retest the former resistance line on top of the descending triangle, which is now acting as support. We can see a clear bearish rising wedge that's formed as well as a strong support line on the RSI. This support line must hold.
Looking at this current wave up, I believe we're still in wave 1, with wave 2 to follow shortly. I believe it might look something like this:
The above is my primary count. The volume remains strong and must stay that way if the uptrend is to continue. I remain bullish on Bitcoin, with the caveat of a small correction to come.
I do have a secondary count that may be valid and is slightly more bullish. It would mean wave 1 and 2 are complete and we're watching wave 3. It would look like this:
There is a final bit of information you need to be aware of. Most people calculate technical analysis based off price rather than a percentage of price movement. However, there are some analysts who believe TA should be based on percentage of movement rather than the actual price. To do this, you must set a chart to what's called "LOG Scale". When switching the bitcoin chart to LOG scale, we can still see a descending triangle, but bitcoin has NOT yet broken out of that triangle.
Some believe that in order to confirm an uptrend, bitcoin MUST break out of this on LOG scale. You can see it still has a way to go. That said, a possible path to that happening may look like this:
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Nice to see confirmation, the rising wedge also formed on EOS, VERGE since yesterday, but so far nothing dramatic has followed. Interesting juxtaposition of breakout scenarios, comparing to LOG scale. Climbing out of this extended correction is proving to be a drawn out process, leaving room for bearish sentiment, fear of a bull trap.
A bull trap is still possible. I'll feel much more confident when bitcoin breaks out on the LOG scale chart. The one thing that makes this uptrend seem different is the timing. I and many others have forecasted for months the possibility of tax season being a major factor in the downtrending cypto market. Now that tax season is nearly over, it makes sense that a lasting uptrend would begin. We'll see.
This post really make me happy, because I think bitcoin will go to 100k to the end of the year, I have about a half bitcoin and I trade other currencies as well, but I always keep the most part in bitcoin. Bitcoin is the father and is the main currency and no currency can be better right now even if they are trying.
I agree Bitcoin is the "father" of crypto. A $100K bitcoin by the end of 2018 is a little optimistic, but hey, I certainly hope it happens. There's no doubt Bitcoin is the one crypto that's virtually guaranteed to be around for years to come. Everything else is pure speculation at this point. As with all things, time will tell. Thanks for the upvote
Even my partners upvoted now, I hope you liked our service. ☺
Hey @workin2005
Great job. You really explain the details very well. I mess around with the charts a little but, unlike me, it looks like you know what your doing! :)
The signs a starting to look good for sure. I've been fairly certain of an uptrend as the year moves on. The later in the year we get the more dramatic the rise, mirroring last year.
Either way, I'm confident in the long term forecast.
Thanks for posting.
Cheers, Gaz.
Thanks for the kind words Gaz. I checked out your post on "Mountain Madness". Quite impressive my friend!
Thanks very much. The subject means a lot and I guess you could tell I was emotional doing it. Hell, I was emotional writing it! :)