Well, in my previous post BTC - Another BULL or PULL? we observed the chart pattern where BTC followed through a series of bull run, consolidation to a retracement period.
Yesterday’s bull run however, skipped the retracement period. It went straight from consolidation to a bull run. While it may seem to break out of the cycle, actually it was not.
As we can see from the chart above, the bull run from 8 Nov 20 (14,400-ish) to 25 Nov 20 (19,400-ish) did not have a clear consolidation period but a series of minor consolidation periods. And the most interesting fact is that it didn’t make a major retracement; not until after the 19,400 level.
So what could possibly happen next for BTC is that, we may face some major retracement.
Although I am bullish on the overall trend of BTC, but be prepared for the retracement guys. We had some long green candles from these past few days. RSI readings are also higher (80-90) than the time before the retracement on 25 Nov (RSI 70-80). The retracement period may be near.
A wise decision is to not long at green candles, wait for retracement to enter.
Disclaimer: This is not financial advice. Please do your own research before making any investment.
Yesterday’s bull run however, skipped the retracement period. It went straight from consolidation to a bull run. While it may seem to break out of the cycle, actually it was not.
As we can see from the chart above, the bull run from 8 Nov 20 (14,400-ish) to 25 Nov 20 (19,400-ish) did not have a clear consolidation period but a series of minor consolidation periods. And the most interesting fact is that it didn’t make a major retracement; not until after the 19,400 level.
So what could possibly happen next for BTC is that, we may face some major retracement.
Although I am bullish on the overall trend of BTC, but be prepared for the retracement guys. We had some long green candles from these past few days. RSI readings are also higher (80-90) than the time before the retracement on 25 Nov (RSI 70-80). The retracement period may be near.
A wise decision is to not long at green candles, wait for retracement to enter.
Disclaimer: This is not financial advice. Please do your own research before making any investment.
