Bitcoin now ready to push through $20k

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(Edited)

After a few weeks of consolidation, bitcoin is now ready to challenge and break all time highs

For those still waiting for a better entry point on bitcoin, well you are probably going to have to keep waiting.

Bitcoin spent much of the last several weeks consolidating between $19.5k and $16.3k, which actually presented about a 25% pullback for those nimble traders.

However, based on the price action we are seeing now, I think the next move is higher, and probably significantly higher.

That consolidation range had been putting in a symmetrical triangle pattern on the daily chart, which can be seen below:

image.png

(Source: https://www.tradingview.com/chart/?symbol=BITSTAMP%3ABTCUSD)

A symmetrical triangle pattern can be a reversal pattern or a continuation pattern, depending...

In the vast majority of instances, when the price breaks out of the triangle, it tends to trend in that direction.

In the above example, we can see that the price is breaking out of the triangle to the upside, which means the odds favor bitcoin continuing to move in that direction over the coming weeks.

Awesome! How high might it go?

Predicting an ultimate price target can be rather difficult, but in patterns like this sometimes we can use measured moves to determine where the price may head.

One school of thought on measured moves says to take the top of the triangle pattern and subtract the bottom of it to get the measured move target.

In the above example, that would mean subtracting about $16.3k from about $19.5k, which would give us a range of about $3.2k.

You then add this number to the breakout from the triangle, which is happening now at about $19.2k.

So, adding $3.2k to $19.2k would get us around $22.4k for a potential near term target.

Others like to zoom out a bit and use the run-up into the triangle pattern as a possible price target coming out of it.

In this instance, the rally really started around $11k and ran to a little over $19k, which would give us a range of about $8k.

Adding that to the current breakout would point to a near/medium term target of around $27k ($19k + $8k).

Personally, I think we break $20k in the coming weeks by a few thousand dollars (something like $22k seems reasonable), then pullback and retest that $20k which will then become support, then from there I think we launch to much higher numbers over the following weeks/months.

Happy trading!

Stay informed my friends.

-Doc

Posted Using LeoFinance Beta

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19 comments
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(Edited)

After a few weeks of consolidation, bitcoin is now ready to challenge and break all time highs

I agree with your first words. Bitcoin will break its highest target and set the highest record. And we are in that expectation. Bitcoin is likely to break 20K and become 21K.

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The only question in my mind is whether it happens in the next couple days or if it takes a week or two. :)

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No one can ever be right about bitcoin. Because prices can go up at any time, and prices can go down at any time

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No one can ever be right about bitcoin

Even a broken clock is right twice per day...

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(Edited)


Check this out. Goin' off the charts.
https://twitter.com/NorthmanTrader/status/1338085928578019328?s=20

EDIT: Link you back to post of mine on the subject the same day you posted the same. The bottom line? The correlation is very high. The underlying 'fundamental' reality is also pointing north.
https://hive.blog/hive-126009/@cryptographic/inflation-getting-more-and-more-attention

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Yep, bitcoin has the perfect macro backdrop as well.

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As soon as we break $20k it's going to moon.
$27k sounds right before we get any kind of pullback whatsoever.

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It could certainly happen. The really crazy thing is that once we break and hold $20k, history says we will never trade below $20k again. Pretty neat to think about!

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I'm still hoping Feb will be a good month to buy and we break below that level... however I guess if I end up being right about $50k the chance of that happening is nil.

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I am expecting 21$ k for short term. 20$ k is look like solid resistence. what you say?

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It's so frustrating watching btc in a bull market while Hive is still stuck in the doldrums. I think the reason most alts aren't riding the coattails of btc's pump this time unlike years ago is because this time it's the institutions that are causing the pump and not individuals.

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There is probably a lot of truth to that. They are buying bitcoin and to a much lesser extent ethereum and not really anything else. The good news is that eventually money will spill over into other projects. Just need HIVE positioned to be one of those. Right now, it's not even close.

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Just a little note to say I always appreciate your updates. I might not comment, as I don't understand enough about crypto to sound smart, but I do read your posts.

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