I'm creating this chart to share a hypothesis on how far I think Bitcoin can go before the next major correction.
The monthly price action is best contained within a rising wedge on a logarithmic chart.
As we can see, Bitcoin took 638 days to go from the top (November 2013) to the bottom (August 2015) of this channel and then 853 days to go from the bottom (August 2015) to the top (December 2017) of the channel.
Then Bitcoin took 365 days to go from the top (December 2017) of the channel back to the bottom (December 2018). This is 57% of the time as the first top-to-bottom move of 638 days.
Assuming it takes 57% of the time to reach the top of the channel again, Bitcoin could top out around $55,000 - $60,000 in April 2020 before the next major correction. This would be a month before the mining reward halvening which is set to happen in May 2020. Coincidentally Litecoin topped out a month before their halvening.
Below are some charts that I used to predict the bottom of Bitcoin in January 2018. This gives me some confidence in my analysis however it's fair to say no one knows the future and there are number of things that could stifle this Bitcoin advance including but not limited to a Tether collapse, Bitmex collapse, Asian whale Mt. Gox settlement sell off, and/or strict US regulations.
The monthly price action is best contained within a rising wedge on a logarithmic chart.
As we can see, Bitcoin took 638 days to go from the top (November 2013) to the bottom (August 2015) of this channel and then 853 days to go from the bottom (August 2015) to the top (December 2017) of the channel.
Then Bitcoin took 365 days to go from the top (December 2017) of the channel back to the bottom (December 2018). This is 57% of the time as the first top-to-bottom move of 638 days.
Assuming it takes 57% of the time to reach the top of the channel again, Bitcoin could top out around $55,000 - $60,000 in April 2020 before the next major correction. This would be a month before the mining reward halvening which is set to happen in May 2020. Coincidentally Litecoin topped out a month before their halvening.
Below are some charts that I used to predict the bottom of Bitcoin in January 2018. This gives me some confidence in my analysis however it's fair to say no one knows the future and there are number of things that could stifle this Bitcoin advance including but not limited to a Tether collapse, Bitmex collapse, Asian whale Mt. Gox settlement sell off, and/or strict US regulations.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
