In the technical analysis, everyone fights for the same. And sometimes, if you hold a very firm opinion, it can sometimes come back. That happened for example to Peter Schiff, a fervent supporter of gold as an investment tool, and notorious anti-bitcoinner:
The Bitcoin chart looks horrible. Not only does the flag follow the recent breakdown project a move to $ 6K, but we are close to completing the right shoulder or a head and shoulders top, with a $ 14K head, and a neck line just below $ 8K, that projects a collapse to below $ 2K!
– Peter Schiff (@PeterSchiff) October 19, 2019
On October 19 Peter Schiff tweets that the price of bitcoin looks “terrible.” And that a fall below two thousand dollars is even possible. But the opposite happened. Last Friday, bitcoin rose by more than 42 percent in one day. That is the largest daily increase since 2011!
You cannot actually see the price rise separately from last week’s news. Fundamental factors drive up the price. For example, many analysts believe that the price rise may have something to do with the recent statements by the Chinese president. But if we look purely at the graphs, what can we expect from the bitcoin rate?
Most bullish scenario came true
We had not taken into account that it would go so fast, but the most positive scenario came true!
The bitcoin exchange rate reached 6,600 euros last week. Then it went quickly. Less than half an hour after Axel went live, the race shot through the resistance of 7,200 euros. At around 7,800 euros, bitcoin took a break and then went through to almost 9,500 euros.
But 9,500 euros seemed a bit too high. The exchange rate therefore dropped back to 8,000 euros. That is again at the level of support from June to September. Bitcoin is now at more than 8,500 euros, a bit above that support.
Bitcoin broken from a big trend line
The explosive growth of the bitcoin course surprised everyone. You may wonder whether the price is sustainable in such a short time after such a huge rise. But it seems so for the time being. The course has broken out of a big trend line.
Since June the bitcoin course has not succeeded in breaking out of the falling trend line. But on October 26 the race went through at once. And not only that, the course also finds support on the trend line (see the green arrow). We call that testing the trend line.
This forms a good basis for bitcoin to continue rising.
Hmm, that is familiar …
You may get a vague déjà vu feeling when you see the previous graph. That can be right, because the situation today is very similar to that from the end of 2017 up to and including May 2019. Only on a smaller scale:
Since the summit at the end of 2017, the price of bitcoin has fallen considerably. For a moment the bottom seemed to be found, but on November 14 last year the course collapsed. That was only the real bottom, and on April 2 the course finally broke through the trend line.
The rate today is suspiciously similar to that of April 2, when bitcoin has just moved out of the trend line. To fuel the FOMO a little: after that the rate rose by 186 percent in a few months. Whether it will be this spectacular again this time?
Are we back in the bull market?
Bitcoin is back again. But does that also mean that we are back in the bull market? For many analysts, the 200-day Moving Average is leading. Below this line often means a structurally falling market. And above the line is positive for the long term.
In October it was therefore pinching. The rate was below the 200-MA for a month. According to some reason for panic. But the price of bitcoin has recovered pretty well. In the coming weeks it will become clear whether we can look further up.
Bullish pennant in the making
If there is one geometric shape that analysts love, it is a triangle. A course then moves between two trend lines, like a cat in a corner. He must and will make a leap, but which side does he choose?
A bullish pennant is currently forming. According to the booklet, that is a price formation that can lead to a rise. The course then moves between two trend lines, which together seem to form a flag.
You can see that on the graph below. The graph is focused on the short term. Each candle represents one hour:
Does bitcoin move out of the flag? Then the target price is as large as the “opening” of the flag. In that case we can expect an increase of around 18 percent, towards the 10,000 euros. If bitcoin waits until the end of the flag, we can expect this outbreak no later than October 30 at 6:00 AM.
What can we expect from the rate?
One small step to the moon, or back to the ground, that’s the question. The wise words of Shakespeare as he stepped out of his rocket. Are we going to the 10,000 euros or are we going back? Because we are always objective, we look at both scenarios.
Bullish
Market sentiment has completely changed. The outbreak from the trend line and the bullish pennant are positive. An increase to 10,000 euros seems a lot, but we have already seen what bitcoin is capable of.
Bearish
But does the bitcoin fail to hold on to the rise? Then we can find the first support at 8,000 euros. If bitcoin falls below that level, the bottom of last week becomes interesting again. In that case, bitcoin drops to 6,600 euros.
Win a Ledger Nano S!
Also this week you can win a Ledger Nano S again. What should you do? Predict the course!
How do you think bitcoin will end the month? Predict the bitcoin exchange rate in euros from Thursday 31 October at 11:59 p.m..
You can respond until Wednesday, October 30 at 12:00 noon. At the bottom of this article, or in the comments of the YouTube video. Do you respond later? Then your response will not be included.
Game rules:
- Assume the bitcoin rate in euros from our rate page
- You must be at least 18 years old to participate
- Post-processed responses are not included
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