Dear friends,
Here is a new analysis of Bitcoin on the 2 hour chart.
Note that my previous analyses remain perfectly valid because they are on a longer timeframe.
Bitcoin has formed a perfect bear flag which is also the neckline of the main shoulder formation in the chart.
If Bitcoin can break this neckline with good volume and stay above it for at least 3 or more days we will have a valid breakout upwards. This level is also the important .618 fib level which is often strong resistance or support.
I do not expect 100k but possibly a maximum target as indicated in the chart of max 61-63k. If Bitcoin cannot break this neckline then expect another drop towards the bottom of the bearflag.
Important: The price will only reach the max level if it can break the neckline, target 1 en target 2. It is however perfectly possible that BTC bounces on one of these levels and continue to decline. So place your stops at under these levels when a level has been broken!
Things keep happening in the world where normally the stock markets would have collapsed long ago. The reason is simple. Hedge funds and banks pump additional printed dollars into the markets. Money that is borrowed cheaply from the central banks. Expect a violent energy crisis in the world as well as rising raw materials. Hyperinflation and a sharp decrease of the buying power.
The central banks can print as many Dollars and Euros as they want but unfortunately these end up with the banks and hedgefunds who in their turn put this in the markets. However, it is the citizen who suffers the most and who pays the highest price. Hence a decline in purchasing power and consequently lower turnover for companies. In time, the market will not be able to keep up and a sharp correction is inevitable. Do not expect a one-week drop to the bottom and then a bull market again. It is a process that can take a year or even several years. Many traders keep hoping but eventually they will lose their profits. Eventually, the market returns to equilibrium, but by then the cards have been dealt differently. My advice is to zoom out on longer timeframes and not get stuck in small timeframes which contains a lot of noise.
The chart shows the upward trajectory when Bitcoin breaks out on volume and can hold out for a few days. Then a fall back to the neckline to test and higher price targets. The red trajectory if Bitcoin cannot break the neckline.
Good luck trading dear friends.
Disclaimer This is my view, no advice to buy or sell. Also always do your own research!
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