To be honest I haven’t been posting for a while because my recent ideas haven’t changed much. I still think its ‘possible’ we saw the bottom already, with prices as low as this I’m considering this is the start of an accumulation zone for longer term holding. If I’m honest we are still in a downtrend. Also I’m not ‘all in’ but its an idea I am taking seriously myself and have been adding to my stack for first time in months. This isn’t trading advice for anyone, just sharing of my opinions.
I am due some updates to my charts though so here goes. The pullback predicted in my last post happened almost exactly as I thought, which is nice when that happens. Heres a look how that head and shoulders played out on btc-e 4 hour chart.
Price fell almost as soon as I clicked post I think. Also the initial bounce was almost exactly on the bottom dashed purple line of the original chart where I expected. After which price has fell through what was my bottom line, now lying under that channel I had been looking at. Although I’d like to have seen bitcoin stay within my purple channel I’m not too concerened to see it fall through the bottom.
Heres a look at zoomed out view on 1 week candles.
I’ve examined this idea before but here again, why I think we might have already seen the bottom. Lower green trendline has also been hit by other significant lows including low point of the mini bubble correction and silk road panic sell off. Just looking at the drop from the peak its getting hard to see how much lower it can go without bitcoin collapsing entirely. Also on this view the bearish trendlines have been broken through a few times now with price looking to be leveling off a bit.
However before getting too carried away, for a different perspective, on the log chart we see downtrend still rules the roost.
On log price scale we are still well below powerful line of resistance. Recent bull run fell short of even testing it.
I guess like everyone else I’m just waiting to see how it all unfolds but cautiously optimistic the tide is turning