Bitcoin 3.25.18 - The Way to 7k or 10k
... Here's How
Since the 5th of Feb we have been on a general downtrend as indicated by the regression channel in the image. This channel encompasses the movement & ossicalations of Bitcoin over the course of the last 2 weeks fairly well. Breaking above the upper edge of the RC channel is hope for a trend-reversal and on the 18th/19th we were gifted that change! We started moving up and got stuck in some range-bound motion.
https://www.tradingview.com/x/YgzeHKtU/
Notice the range that we have played since that trend reversal has been range-bound between the 2 Fib levels of roughly 8320 and 8980. Will we find support yet again around that level? Yes odds are good. The small rising wedge (red) from yesterday puts us exactly at that level. With hope the larger rising wedge (green) manages to slide past us and we don't travel that road downward.
https://www.tradingview.com/x/WTqOpNBA/
Breaking too far past the dotted red line (the upper limit of the RC channel) and through the Fib level at 8320 puts us back into the downtrend we started Feb 5th. We don't want to go there. What we need is a new higher high that breaks past the upper Fib level at 8980. This higher high will allow us to take those 3 smaller RC channels and form 1 larger uptrend RC channel - we want 1 giant uptrend to swallow all the little guys!
So what does this all mean?
Sentiment:
Market sentiment seems to be good, people are happy and excited for things to change, everyone is crying for a bull run! The ridiculous prices of STORM yesterday were proof that the public is asking for a change of pace, they are jumping on anything that moves in the upward direction. People want up, news has been good, but everyone is still walking on egg shells.
Technicals:
Technicals look promising. We have solid support below us with the Fib level at 8320 and the line for re-entry to the RC channel. We have already bounced twice from this support.
Two options for the TA:
- Pink falling wedge brings us up to 10k or
- Green rising wedge brings us down to 7k & THEN the pink falling wedge plays out.
