BTC at U$ 55k? Is it possible?
What the chart can tell us about the future of BTC?
There’re a lot of theories surrounding the crypto, and most of them are positively promising, and these theories are gaining strength now, specially with the halving coming this month. For instance, we have models that can be used to determinate the Bitcoin’s value, like the Stock-to-Flow model, which I find interesting and it makes sense, but what I’ll do here today is analyze the chart.
Let’s look the weekly chart for a good perspective. Now, BTC is trading inside a descending channel for months, which is typical of a bear market, and here I’ll quote again what Charles Dow, the technical analysis’s father, said about a century ago: “Trends persist until a clear reversal occurs”.
And that’s bad right? I mean, that “clear reversal” didn’t occurred yet. Yes, that’s true, but there’s a light at the end of the tunnel here. Look more carefully at the volume.
During the last bullish movement (evidenced by the purple rectangle) the volume was low, even lower when compared to the whole year (evidenced by the red rectangle). That means that the bulls were not strong enough to change the trend.
Now, we witnessed another good bullish reaction over the past weeks again, but this time there’s a difference. Look how the volume increased! Even the 21 moving average that is in the volume is going up now. Charles Dow also said: “Volume must confirm the trend”. And that could make the whole difference for BTC now.
And if a bull market starts here, I firmly believe BTC will have the strength to breakout the U$ 14k and will test the U$ 20k again. At least that’s what the chart tells us.
So, there’s a lot in stake here. With the halving coming and the price at such delicate moment, we are living one of the most decisive moments on the history of cryptos.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
There’re a lot of theories surrounding the crypto, and most of them are positively promising, and these theories are gaining strength now, specially with the halving coming this month. For instance, we have models that can be used to determinate the Bitcoin’s value, like the Stock-to-Flow model, which I find interesting and it makes sense, but what I’ll do here today is analyze the chart.
Let’s look the weekly chart for a good perspective. Now, BTC is trading inside a descending channel for months, which is typical of a bear market, and here I’ll quote again what Charles Dow, the technical analysis’s father, said about a century ago: “Trends persist until a clear reversal occurs”.
And that’s bad right? I mean, that “clear reversal” didn’t occurred yet. Yes, that’s true, but there’s a light at the end of the tunnel here. Look more carefully at the volume.
During the last bullish movement (evidenced by the purple rectangle) the volume was low, even lower when compared to the whole year (evidenced by the red rectangle). That means that the bulls were not strong enough to change the trend.
Now, we witnessed another good bullish reaction over the past weeks again, but this time there’s a difference. Look how the volume increased! Even the 21 moving average that is in the volume is going up now. Charles Dow also said: “Volume must confirm the trend”. And that could make the whole difference for BTC now.
And if a bull market starts here, I firmly believe BTC will have the strength to breakout the U$ 14k and will test the U$ 20k again. At least that’s what the chart tells us.
So, there’s a lot in stake here. With the halving coming and the price at such delicate moment, we are living one of the most decisive moments on the history of cryptos.
Remember to follow me, I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
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