Bitcoin technical Analysis Update (BTC/USD): BTC set break above all resistances above, $13000 is set to be breached, From there a Break from Downward Targets.
Analysis Summary:
Hi Friends, welcome to this Quick analysis of Bitcoin.
In my last Post I gave a target around $12,500 from the bull flag that had drawn on the chart, so far since my last post BTC has easily breached the EMA200 (blue) as I expected but however it was held around $11,000 and the rally was stopped before breaching my target.
Looking at the 4 hour chart we can see that the levels where BTC was pushed back is the 61.8% retrace so BTC can be expected to hold for some time around that level but as you can see BTC now have some really strong support downward so this hold can only be expected to be short as well as a slight hold $12700 and around the top of downward channel.
Why I am saying those holds will be temporary because there is some evidence on the chart to support that, you can see that a Bullish EMA crossover in near us and I think that can happen around the same time when BTC will be around $13000, that will be the final push required from the bulls to throw out any negative sentiments that has been on the market.
You would have noticed I have drawn another bull flag which was formed by BTC getting held at 61.8% retrace; BTC has been forming these bull flags regularly now before having a sharp rally so this time a sharp rally till the top of downward channel in pink around my target seems to be breached already.
And a break above that can bring the EMA crossover which I think is gonna be enough push for BTC to cross above $13000, and after that I will have to draw some new upward targets that I do not want to talk now but it looks very near when we will be talking about higher highs than any of the lines on my chart.
That will be all for now, I will keep you guys Posted in the as the chart develops further.
Till then Goodbye and Best of Luck to You People.
Good article. Love reading your analysis, which I've followed for some weeks now.
I'd like to point out that there's still a good chance however that Bitcoin could bounce back to a lower low than was seen 2 weeks ago, based on some of its more fundamental metrices. I blogged about one of those a couple of days and sadly it still remains low today.
There's is just no way in the world it will sustain any of this recovery until that fundamental value goes up I believe. Here was the take then.
https://steemit.com/cryptocurrencies/@kenraphael/this-single-metric-seems-to-correlate-more-with-cryptoasset-values-the-past-two-weeks-than-most-predictive-methods
thanks for reading my post and commenting, i read your aritcle and upvoted you did some commendable job over there. Fundamentals need to be looked at i agree with that.
However BTC is now different than it used to be some time back, it now involves a heavy amount of institutional investors unlike any crypto so far, so the charts will matter much more now than they used to in an earlier time,
there are many supports down there for BTC so i dont see any heavy fall in BTC based on charts so far but i will surely look down as well if the chart suggests.
and count me in your readers if you decide to post the data on new accounts regularly.
Completely agree that the newly accelerated involvement in institutional investors can indeed alter the Bitcoin chart and value from what its fundamental relationship has been with its user adoption rate going back 8 years. However, I would be very surprised if two months down the line its price can sustain any growth if that adoption rate remains flat or continues to decrease. There would just really mean its growing based on air. And before now it really had been growing in response to actual adoption. Like this quote I had in a follow up blog: Fundamentals will never go away - they can only take temporary vacations.
Thanks for taking time to read the article and I really appreciate your thinking through this with me as well. I am also trying to learn and reason through this as well and your perspective was quite helpful.
Wow greate article!
You just got a 11.90% upvote from @postdoctor!
Thanks for using the @postdoctor service!
You got a 6.34% upvote from @minnowvotes courtesy of @ajai!