Good morning traders! We hope you are having a beautiful day.
🔸Today we want to show you our vision of bitcoin in the short-medium term and explain why we see it extremely bullish.
- Speaking a bit of the context and history, we can see that bitcoin hits all-time highs in late 2017, reaching almost $20,000. After this, there came an abrupt decline that found its lows around $ 3000. From there, the upward movement has been resumed.
- During this year, this crypto has made almost a 200% bullish movement.
- Analyzing the behavior of the chart, we see that it has potential to be a Cup and Handle movement pattern.
🔸Now we go with a little of theory:
- The cup and handle pattern implies a movement in the price that makes a high, a decline correcting movement, a consolidation at lows, and then the subsequent upward recovery. You can clearly see the transition from lower lows and highs to higher lows and highs. After this, it needs a retest of the previous highs (double top pattern), and for a bullish corrective move.
🔸Now, does this imply that bitcoin is going to breakout and make an explosive bullish move imminently?
- We do not know, but according to the characteristics of this pattern, no.
- What we should expect is a retest of the Resistance zone (all-time highs), and then a corrective move (flag, triangle, pennant, etc.).
Once formed, the idea is to trade the breakout.
- The MINIMUM target of the movement is calculated by measuring the distance between the minimum of the range and the maximum.
- This calculation gives us a distance of $16500-$16600, which, projecting it upwards, gives us an approximate target of $36000.
🔸Today we want to show you our vision of bitcoin in the short-medium term and explain why we see it extremely bullish.
- Speaking a bit of the context and history, we can see that bitcoin hits all-time highs in late 2017, reaching almost $20,000. After this, there came an abrupt decline that found its lows around $ 3000. From there, the upward movement has been resumed.
- During this year, this crypto has made almost a 200% bullish movement.
- Analyzing the behavior of the chart, we see that it has potential to be a Cup and Handle movement pattern.
🔸Now we go with a little of theory:
- The cup and handle pattern implies a movement in the price that makes a high, a decline correcting movement, a consolidation at lows, and then the subsequent upward recovery. You can clearly see the transition from lower lows and highs to higher lows and highs. After this, it needs a retest of the previous highs (double top pattern), and for a bullish corrective move.
🔸Now, does this imply that bitcoin is going to breakout and make an explosive bullish move imminently?
- We do not know, but according to the characteristics of this pattern, no.
- What we should expect is a retest of the Resistance zone (all-time highs), and then a corrective move (flag, triangle, pennant, etc.).
Once formed, the idea is to trade the breakout.
- The MINIMUM target of the movement is calculated by measuring the distance between the minimum of the range and the maximum.
- This calculation gives us a distance of $16500-$16600, which, projecting it upwards, gives us an approximate target of $36000.