We have been speculating about a big move in bitcoin since the last month, and price has stayed mostly sideways, despite a lot of triggers which could have moved it. But guess what!
We are now seeing a symmetric triangle pattern on the 1D timeframe!
Disclaimer: I'm not a financial advisor, and I urge you #DYOR a bit before taking decisions :)
My main motive is to share insights to the readers. Feel free to drop in your questions/suggestions below
Lets have a look at the charts:
Chart: BTC/USD, 1D:
Link:https://www.tradingview.com/x/nF7ozvNE/
Looks confusing? Well, I have both Bullish and Bearish cases for you!
Lets have some more insights:
The Bearish Case: π
It breaks down somewhat like this:
Link: https://www.tradingview.com/x/iqHEYkmG/
But if you are a long term HODLer, then nothing to worry about, as this will, in fact form the right shoulder of a more potentially bullish Inverse Head and shoulder's pattern, which I covered in one of my previous posts
The Bullish Case: π
It breaks above, sky's the limit here.
Link: https://www.tradingview.com/x/7QWH765c/
Look at how small this symmetric triangle is, in comparison to the huge multi year symmetrical triangle we have been forming.
Well, but, we also need to break the historical resistances of $13-14k, and then $19k before mooning.
Overall Bias: Neutral (Expecting a major breakout/breakdown)
Bonus Chart: BTC/USD, 1D
Ichimoku Chart:
Link: https://www.tradingview.com/x/7zMXD3R4/
Currently the cloud is acting as support (which is good for a bullish case), though on 4H timeframe (not shown), I see a few bearish signs.
The settings: 18-50-100-18 have given decent results in the past, on 1D timeframe. (though there are a few exceptions)
Points to note:
- Sentiments look indecisive
- Gold price is bullish, and is also nearing a major historical breakout (I'm going to cover an article on that as well by tomorrow)
- Altcoins have given major gains in the market.
- Worst case: We may revisit $5k -ish (though there will be a lot of time before that happens)
- There's not much time left to act! β²
So considering all the points, (also feel free to add in yours in the comments), what do you think?
I've placed my bets on both sides.
My overall advice: Stay safe! Be prepared for either side!
I'm expecting a move by Monday, and I may be wrong as well.
If you want to take advantage of this major incoming move, while being unsure whether it will break up or down, you can buy some "Move" contracts on FTX! and if Bitcoin makes a major move, you will gain a decent amount of money!!
I've embedded my referral link if you want to support my work, but its up to you if you want to use :)
A word of advice though: If you dont understand how it works, please don't take much risk. Derivative contracts usually have greater risk than the underlying asset
Or head over to their official blog to understand the basics of how it works.
Let us know what you think!!
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Feel free to get onboard!
