Last week, a good friend forwarded an article from the Business Times about A local food court joint taking epayments to the next level. The article titled Kopitiam takes e-payment to next level with cryptocurrencies just shows how fast the undercurrents of change are happening. Meanwhile, the US President takes a dig at Bitcoin, and there are many perspectives about cryptocurrencies and its applications.
In a conversation, it was mentioned to me that Bitcoin is very volatile recently and it prompted me to take a longer term view to see if this volatility should be expected and what it might mean for Bitcoin per se.
The BTCUSD daily chart clearly demonstrates that there is about 25% variation in this particular consolidation phase. It is a large consolidation range with a lower range support of about 10000.
The weekly BTCUSD chart shows a slightly different perspective with long tails at the top above 12000, indicating a strong resistance level there. This also suggests that there is more downside, possibly to about 8000 in the mid term.
I wondered about the larger picture, and if all of this is volatility is part of a large movement that we seem to be missing. Using the monthly BTCUSD chart, and plugging in a log chart instead, a very clear uptrend is observed. There is a clear uptrending channel and the next possible target 🎯 is probably 80000 by 2020.
In a closer perspective, the current year bull run analysis revealed another interesting trend pattern. There is a consolidation and run pattern repeated. And measuring the magnitude of the rallies show that with every rally, there is an increase of one magnitude of the original rally. This is shown in the chart as yellow arrows. Projecting forward, a possibility remains that this large range consolidation is in preparation for the next target of 19000.
Given these patterns, and taken as a stand-alone, Bitcoin (BTCUSD) appears to be in the next phase of a bull rally, and this is part of a yet larger bull rallywhich is perhaps only starting. There is only one way to be sure… we would know in about 12 months time. Meanwhile, we are left to decide how we want to handle whatever is at hand.
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