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Bitcoin has finally entered its last phase of its bull cycle
It took a while, but Bitcoin finally broke out of its sideways movement. In the last post I thought that it could look something like this:
And it happened just like that :) I based this prediction of the classic a-b-c-d-e sideways breakout to the top (Elliot wave theory) and it worked like a charm (it doesn't always ;)
We already saw the confirmation of a trend change when price broke out of the downward trend seen here in the weekly chart. This is always a strong indicator for a change in direction, however a further confirmation is needed which was provided by breaking out of the thin blue trend line seen here at the tip of the second arrow.
So now we are left to wonder: how far up will Bitcoin go on its last push upward before the onset of the bear market? When we zoom out it seems that many trend lines are converging at the 100k price level. There are at least 3 pointing to that target. The interesting and important thing is that they are all converging at exactly the right time as well. For the past year I have been arguing that the top of the current cycle would culminate in summer of 2022. So far we rare right on track for that. I have also argued for a 3 wave bull market which makes sense given that markets in general move in this 3 wave pattern. However, it would be unique to Bitcoin as the tops of the bull cycles generally have always looked different. I have shared this "second insight" here where it seems that this cycle differs to the other ones in so far as the biggest push happened earlier and the top is an extended sideways movement.
The green path could be how price evolves in the next months, with the strongest resistance at around 60-70k. There will be at least one 20-40% correction on the way to the top, so beware! ;)
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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