What is up folks, long time no see… I tell you what is up … BTC is up, but we don’t know for how long.
The week has passed and I am seeing people all over TV posting their trade ideas calling for cup and saucers, round bottom flacks, and variations of . When sometimes the pattern is recognised correctly, yet most of the time it is just pure imagination.
Here are several things that IMHO are important to look for and might have a sway on the potential resolution of this consolidation pattern.
I am going to go on the limb and say that the in which we have been moving for the past 3 months is a structure, however, in an overall macro environment, I would not put too much weight on the nature or statistical probability of the formation. This being said, there are important factors that might influence the resolution of this formation to the downside. And here they are:
– Bitfinex, ifinex and tehter are under investigation, and as long the are being under inditement I seriously doubt that we are going to see the print of new tether to support the pump.
– Believe it or not, most of the BTC trading is still done using teher, and if there is no new thether printed, there will be no pump, none what so ever.
– Most of the money that will be coming to the market via Bakkt and other players have a massive sentiment which means that we most likely will see an enormous dump before seeing any pump.
For the short term, we see that the price is moving is a very slow downtrending primary and uptrending secondary channel and the price got rejected multiple times, however, if we will manage to close the 4 hour candle above the 10400$ mark we most likely will see the continuation to 10560 and later to 10900 levels.
If we retrace and close 4h candle bellow 10280 level, then my first downside target will be around 10050 and later to 9960 levels.
– We will likely resolve the whole consolidation structure to the upside
– Bakkt will most likely prime the price bit higher during upcoming weeks to have a nice area to start a dump from.
– Fed’s and ECB’s decision concerning the rate cut will eventually direct attention and some of the traditional liquidity to gold , silver and BTC . However, this will only have a temporary effect on the price movement and will retrace back as soon as the news cools off.
Published at Sat, 14 Sep 2019 18:01:15 +0000