Bitcoin tumbled yesterday after almost hitting 10,000 in value. Since the drop we saw it get into a triangle pattern which it has since broken out to the upside.
Here is the chart that shows BTC and the drop and now rebound. Now the question is will this move break the previous high and take out the 10,000 level or will this drop once more?
I threw up the FIB ratios so you can picture the current upwards move a little better and as you can see we are nearing the .618 level. This is the magic ratio that more times than not you will see a reversal around. Personally I believe we just saw a simple pull back and we are continuing on our way up to the top of the flat pattern.
If you take a look at the chart below you will see the big picture of Bitcoin and you will also see the current pattern we are trading within which looks like it is making a flat of some kind. Because of this we are expecting to see the price to climb all the way to the upper resistance line where we will have to wait and see what kind of pattern it will take from there.
So what I take from this in the long run is we should be seeing more upside on this crypto until we hit the 11500 level in which case you should follow it carefully in case there is another drop in price.
There is a chance that the chart might fall once more and take out the prior low before we see the giant move upwards that everybody and their cousin is waiting for. If that is the case you want to be out of the market so you do not get caught in that 50% drop. If this is making a flat pattern, know that the majority of flats are a continuation pattern which would mean we would see more downside. It doesn't have to happen like this but there is a high likelihood that it could happen.
I hope you liked my analysis and if you would like to check out some of my other analysis I will post them below. I also have a contest going right now on right now on guessing the closing price of the S&P 500. I will take guesses until the open of the market tomorrow so get your choice in before then. As always have a great day and an even better one trading.
Previous Posts:
Contest:https://steemit.com/contest/@ricjames/weekly-s-and-p500-contest-april-27th
S&P Analysis: https://steemit.com/steem/@ricjames/61yyvg-daily-update-s-and-p-500