Firstly, this is a very simple analysis but could it prove to be fortuitous? As you can see from analysing the Bitcoin Daily Chart provided below, which will of course be absolutely no shock to any of you, the price of bitcoin has been in a very steady decline since the beginning of the year. However, if you look more closely it is easy to notice that this decline has been trading within two very strong support and resistance lines. The swings starting off very large and now becoming much smaller and less volatile. Simultaneously, evidenced by the volume bars below the chart, volume has been slowly decreasing over the same period. It is therefore ascertainable that Bitcoin is heading into a period of consolidation finding a home around that $6200 mark. Similarly, to trading stocks, when a stock is consolidating in a range for a period of time, people start to give up on the idea and nobody thinks it’s going to move, this tends to be when the largest movements, or breakouts, occur. However, it is not possible to predict the direction of the movement, but it therefore seems plausible to expect some sort of breakout from this consolidation around that November period. What do you guys think is going to happen and what direction are you anticipating the move to be in?
