#BTC: MASSIVE RALLY IN SEPT 2018--- MOMENTUM SILENTLY BUILDING A
Bitcoin is presently in the middle of a very interesting paradigm shift.
Having reached equilibrum and then a short squeeze that sent price to the anticipated $6800 resistance area, followed by a dump that sent price back to the accumulation zone, price seems to have continued its strong consolidation in preparation for a massive rally in Sept 2018 IMO.
Naturally, the news of the recent ProShares ETF denial could have lead to a massive sell-off, but the fact that we are still holding the current channel that we were holding before the news, that to me is a bullish type of sentiment, as the aftermath of this whole situation seems to have played in the bulls favour.
Bitcoin has already dropped 70% from the top, from $19800 to $5800, similar to previous retracements in past years coming after hype cycles and parabolic growths.
The previous low of $5775 may not be the absolute lowest it'll get to, looking at price moves in the last 8 months. I do believe we might see a new low in coming days or weeks if the bulls fails to defend this previous low based on what i am seeing on the chart.
4 Hour— Interestingly giving us a clearer picture of price movement in coming days.
A wholistic view of the 4 hour chart shows that price has had 3 wedge formations on the right hand of the chart, with the first two wedge formation giving us a lower low after breaking out, and the third one gave a lower high to complete the bullish inverse head and shoulder formation withing that accumulation area.
We seem to be having the same similar move right now. The present long sideways move and strong consolidation seems to be pushing price up gradually and forming into a rising wedge. if this continues we will push through the $6600 resistance to retest the $6800-$7000 resistance just in between 0.38 fib and 0.5 fib (which coincides with the downtrendline resistance on daily), where we expect a sharp pull back down below to the previous low or a new low
Due to the nature of this present consolidation, a pull back will be fierceful and is expected to lead into an even bigger inverse head and shoulder formation IMO, which is also a bullish reversal pattern
Daily— The bulls have not given up on their quest to break past the $6600 resistance area and the 20 day EMA. We decided to ignor the bull break out of that region yesterday as that was a mere price manipulation by MMs to liquidate all short postion.
If the pump was caused by buy pressure, then after hitting $6800 resistance, the $6600 area which proved to be a strong resistance to break should have automatatically turned support to give us our higher low.........but that was not the case, hence the pull back to accumulation zone after they dumped back on the market.
The sideways move and consolidation on the daily is presently forming into a huge bear flag which makes me to think that we will gradually ascend and breakout, but get rejected by the downtrend line resistance at $6800-$7000 and this will probably send price to retest previous low at the downtrendline support area of $5800-$5775 or even break new lows if the bulls suddendly grow weaker in that area.
This whole scenerio is expected to play out completely on or before sept 30 where we are expected to make a final breakout of the 8 months descending triangle.
Overall, we are presently choked up in a bizzarre range here, and we may soon get a confirmation of a continuation pattern that will lead us down below.
However, as bearish bias as i might have been in my previous posts, I am also watching quite a bit of the negative sentiment coming into market and lots of people turning towards the bearish side which made me consider its not just time for a little rally, an uptrend might just be around the corner......
Having reached equilibrum and then a short squeeze that sent price to the anticipated $6800 resistance area, followed by a dump that sent price back to the accumulation zone, price seems to have continued its strong consolidation in preparation for a massive rally in Sept 2018 IMO.
Naturally, the news of the recent ProShares ETF denial could have lead to a massive sell-off, but the fact that we are still holding the current channel that we were holding before the news, that to me is a bullish type of sentiment, as the aftermath of this whole situation seems to have played in the bulls favour.
Bitcoin has already dropped 70% from the top, from $19800 to $5800, similar to previous retracements in past years coming after hype cycles and parabolic growths.
The previous low of $5775 may not be the absolute lowest it'll get to, looking at price moves in the last 8 months. I do believe we might see a new low in coming days or weeks if the bulls fails to defend this previous low based on what i am seeing on the chart.
4 Hour— Interestingly giving us a clearer picture of price movement in coming days.
A wholistic view of the 4 hour chart shows that price has had 3 wedge formations on the right hand of the chart, with the first two wedge formation giving us a lower low after breaking out, and the third one gave a lower high to complete the bullish inverse head and shoulder formation withing that accumulation area.
We seem to be having the same similar move right now. The present long sideways move and strong consolidation seems to be pushing price up gradually and forming into a rising wedge. if this continues we will push through the $6600 resistance to retest the $6800-$7000 resistance just in between 0.38 fib and 0.5 fib (which coincides with the downtrendline resistance on daily), where we expect a sharp pull back down below to the previous low or a new low
Due to the nature of this present consolidation, a pull back will be fierceful and is expected to lead into an even bigger inverse head and shoulder formation IMO, which is also a bullish reversal pattern
Daily— The bulls have not given up on their quest to break past the $6600 resistance area and the 20 day EMA. We decided to ignor the bull break out of that region yesterday as that was a mere price manipulation by MMs to liquidate all short postion.
If the pump was caused by buy pressure, then after hitting $6800 resistance, the $6600 area which proved to be a strong resistance to break should have automatatically turned support to give us our higher low.........but that was not the case, hence the pull back to accumulation zone after they dumped back on the market.
The sideways move and consolidation on the daily is presently forming into a huge bear flag which makes me to think that we will gradually ascend and breakout, but get rejected by the downtrend line resistance at $6800-$7000 and this will probably send price to retest previous low at the downtrendline support area of $5800-$5775 or even break new lows if the bulls suddendly grow weaker in that area.
This whole scenerio is expected to play out completely on or before sept 30 where we are expected to make a final breakout of the 8 months descending triangle.
Overall, we are presently choked up in a bizzarre range here, and we may soon get a confirmation of a continuation pattern that will lead us down below.
However, as bearish bias as i might have been in my previous posts, I am also watching quite a bit of the negative sentiment coming into market and lots of people turning towards the bearish side which made me consider its not just time for a little rally, an uptrend might just be around the corner......
