Back in December I called for an unbelievable $20k target for the Bitcoin when it traded around $15.6k, and ten days later that target was hit (click on the play button to see how price emerged). It was one hell of the roller coaster ride that month as Bitcoin then lost almost half of its worth in a matter of days right ahead of Christmas falling to $11k.
Rinse and repeat! The crypto king started to grow again, and then I posted another map at the end of 2017, which implied a pullback to the $16k-$20k area before another huge drop to the $7500 area. Amazingly, both the upside and downside forecasted areas were hit accurately (click on the play button to see how price emerged).
The Bitcoin buzz is coming down with the price staying below $10k. It is like a superstar who has seen his best times already and is on the tour to the countries where he is still warmly welcomed as we are not in the $20k euphoria area now (we can call it a “cocaine” time) although you can still buy some pleasant things selling just one coin for more than $7k these days.
In this post, I would like to share with you a familiar pattern I spotted recently on the Bitcoin chart.
Chart: Bitcoin Weekly: On The Crossroads
Chart courtesy of tradingview.com
After losing 70% of the price from the peak ($20k) to the low of 2018 ($6k), there was another good attempt to start the cooling engine of Bitcoin. Crypto-investors took their chance to buy the coin on the panic selling, and the price doubled as there was follow-through demand as people thought that the $20k is in the cards again, some very optimistic guys called for 100K based on exponential growth. But it appeared to be just a good correction and those who didn’t want to quit the coin below the $10k at the first drop, took their second chance to get rid of it during that temporary strength. Then we saw another rally to the $10k and another drop to the $7k.
The volatility evaporated from this market with the smart money pulling out of it. The range of the fluctuations is getting narrower every other zigzag, and it shapes the familiar Triangle pattern (orange). As we are moving closer to the apex of the pattern we should expect the breakout soon.
I highlighted both upside and downside targets of either case. If we get the upside break, then Bitcoin could hit the $14.6k level to build the hope for a revival. On the other hand, if the crypto-currency goes below the downside of the pattern, then we could reach the $1250, which would mean the oblivion for the coin.
I added the confirmation levels at the $9950 for the upside move and at the $6400 for another drop to avoid false breaks.
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Aibek Burabayev
INO.com Contributor, Metals
Disclosure: This contributor has no positions in any stocks mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.
