The last week was brutal for anyone trading without having a strong technical analysis background. Is this the end of the bear market? Let's have a closer look at this week's events and see where Bitcoin is headed towards.
What just happened?
During the last few days we have witnessed an important bullish signal forming for Bitcoin. We're talking about the so called "bull cross". What this means is that we've got a confluence of bullish MA (Moving Average) crosses (21-50-100) and the price level moved above major VPVR (Volume Profile Visible Range) level as it can be noted from the image below:
This week's events mark an end to the previous BTC evolution scenario, as it bounced off the bottom. Currently, the indicators and market supply & demand point to a trend reversal.
What does the graph above really tell us?
As you can see in the graph above, Bitcoin has been forming a 12345 Elliott Wave Pattern which is usually strictly followed by an ABC Wave (the correction that follows afterwards). Anyone who has strong TA (Technical Analysis) fundamentals could easily anticipate this move of the chart and make a very nice profit off the price movement. Kudos for those of you who did!
What are the possible upcoming scenarios?
We're currently standing just past the first wave of the ABC correction pattern, meaning that the price is very likely to bounce up to $4.000 again shortly. Once it reaches that point, also called the end of the corrective B wave, we have two possible scenarios as follows:
If the support is strong enough, we can go right through the next resistance level and then the chart will become parabolic again.
If the corrective C wave begins, we will retest the 0.618 Fibonacci level which ultimately will open up the door to a potential mega 2nd 12345 Elliott Wave.
To sum this up, regardless of which scenario Bitcoin will follow, we're going to see a really nice evolution of the price!
Recent events that pushed the price
Technology Entrepreneur and Tesla CEO Elon Musk said that Bitcoin's structure is "quite brilliant" and that digital currency is "a far better way to transfer value than pieces of paper". Musk made his remark during an interview on advisory services firm ARK Invest's podcast on February 19.
Twitter CEO Using Tippin has launched a new Chrome and Firefox extension that allows users to send and receive Bitcoin micro payments on Twitter via the Lightning Network.
JPMorgan Chase & Co launches its own cryptocurrency GPC with functions similar to XRP (Ripple).
Samsung has confirmed that the Galaxy S10 will include a cryptocurrency key storage (wallet).
BTCUSD "depression" is over
The following image describes the psychological stages in a cycle for any financial market (simplified):
Bitcoin has managed to pass the "depression" stage, supported by the TA showing strong signs of a pattern reversal.
