Good day Hiveians!
Join me in analyzing the crypto markets!
In my last post I compared bitcoin to a very similar pattern seen three years ago
As a refresher you can see the chart here:
I argued that the current price movement would closely resemble this pattern and made this outlook:
In this post I also argued that there is a basic difference:
There is one big difference that separates these patterns in chart 2 and 3. The orange trend line in chart 3 was much lower in chart 2. This has the potential to change the pattern quite a lot. For example, the current support at 46k could hold, meaning that a further slide to 33k could be averted.
This is exactly what happened (so far). Having a support at 46k means that the outlook given above is going to play out differently.
We already saw a new ATH with this support, but recently price has been very "sluggish" with low volume which generally indicates potential for a larger drop to occur (see chart). I see two likely scenarios: a drop to about 53k (support blue line) or a drop to about 48k (support orange line). I am undecided which is more likely to happen, but it seems clear that after such a drop we will see new ATHs.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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