Two Potential Scenarios For Bitcoin

As shown on the daily chart below, Bitcoin has recently broken above several types of resistance, namely a downtrending Andrew’s Pitchfork channel, and two downtrend lines.

There are two potential scenarios for Bitcoin relative to the pitchfork channel:

  1. price spikes up to its 200% Fibonacci outer edge, which is currently around the 10000 level, or
  2. price drops back down to its 100% Fib channel edge, which is currently around 4000.

Keep an eye on the momentum indicator. It’s in the process of forming a higher swing high, hinting of further strength ahead, but we’d need to see a series of higher price swing highs and lows to suggest that its downtrend has reversed with any conviction.

In the meantime, no doubt we’ll see lots of wild daily price swings.
 

(Click on image to enlarge)

Print Friendly, PDF & Email

Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *