If you will remember to a couple of weeks ago when bitcoin was trading around i don't know like right here we drew this zone of resistance and said this is where bitcoin is going to have trouble and that is exactly what bitcoin did because a few days after we made that call bitcoin rallied up right here on this candle wick into this zone of resistance between 11 7 and 12 1.
You're wondering as to whether or not i just pulled those numbers out of you know where i didn't they actually correspond to a double top over here and a top right there back in august of 2019 and late february of 2018 respectively bitcoin has as of right now anyway rejected off of that zone of resistance and a lot of people might be wondering if bitcoin is rejecting off of this zone of resistance is bitcoin done with a bull market is bitcoin just you know are we actually going to break out or not which one is it well first of all you already know my position on this and i want to make it very clear once again and that is that bitcoin is looking very healthy
Right now bitcoin is very bullish right now we've just rallied 30 and bitcoin needs time to lock in those gains consolidate because as i said in the last blog we could trade sideways for the next six months and based on historical precedent bitcoin could still very easily be considered to be in a bull market before we even get into the ta let me remind you what the previous bull market looked like bitcoin traded sideways for 180 days in here before we actually started moving but guess what when we did start moving bitcoin would rally 4,000 in two years so what does this mean for bitcoin does it mean that bitcoin is going to pull back down to 10, 500 and bounce here and then rally or does bitcoin going to trade sideways or is bitcoin going to break out
We're going to get into all of that because i think it's interesting number one and it's also a trading opportunity number two but more importantly number three it doesn't actually matter bitcoin is in a bull market and bitcoin is heading to the upside the technicals the fundamentals and the retail and institutional adoption is looking fantastic for bitcoin so i want to put this at the beginning of the blog and kind of front load it by making sure you guys understand no matter what bitcoin does in the next couple of weeks we're still looking very bullish on the trend as your friend until it ends so far
We have no reason to believe it has anyway with that said let's get back to it as far as what happens to bitcoin right now it is a fact you have not dream that bitcoin is rejecting off of this zone of resistance tell me where that quote's from if somebody knows where that quote's from i will give you the course like holy crap that's a that's that's obscure right there most of you don't even know i quoted something anyway bitcoin double topped right there and has rejected from the zone of resistance that we've been talking about not only that we were in a consolidation pattern and bitcoin broke up and then broke down and now it's rating sideways pretty much exactly
Where it started so what happens from here on bitcoin well guys quite obviously bitcoin needs to break this resistance or it's going to trade sideways or move to the downside i personally think what's most likely here is that bitcoin is going to continue trading sideways for another several days bitcoin is in the deadlock right now we're seeing the strength of the bulls and the bears very much evenly matched the bears are very strong right now and helping to keep bitcoin held down below the level of resistance 11-7 to 12-1 but the bulls are also very strong because we're keeping hitting our head right against it
What i think is going to happen is that bitcoin is going to continue trading sideways and continuously knocking its head against that level of resistance and that leads into two different scenarios that can play out and we just don't know which one's going to yet number one either bitcoin keeps trading sideways and it keeps knocking his head against that and bitcoin's resistance zone continues getting weakened and weakened and weakened and weakened that's something we talk about in the cryptocurrency technical analysis academy with support and resistance right here when a resistance level or zone is tested over and over and over and over again normally
It's going to break because the bowls are obviously strong enough to break through it if they're strong enough to test it 17 times right we've already tested it three four five six seven times depending on how you count it the first scenario is that bitcoin continues trading sideways and continually bumping our head against that zone of resistance until something breaks something gives and bitcoin rallies to the upside now on the other side there is a chance that bitcoin rallies up there just a little bit too quickly maybe on the weekend everybody's