Saturday, 24 March 2018

Bitcoin: Critical Decision Time Coming Soon

As i said in my previous post Bitcoin: This Support Better Holds to emphasize the importance of the support at "D", shown again below,

(Click chart to enlarge)

As it turns out, the support at "D" does hold, for now. The prices kissed this rising trend line at "D" and then bounced off, albeit not with too much conviction.

The following chart shows what happened.

This rising trend line that provides these 4 price supports ("A" to "D") are important because this trend line suggests that despite the huge correction (shown in the purple falling channel), the Bitcoin's longer trend remains up.

If support at "D" is broken,  then we're no longer can say that.

(Click chart to enlarge)

Now that we're bouncing off at "D", it's still not unlikely for the prices to break down this trend line and head south towards "F". I said not unlikely because this bounce off of support "D" has been lethargic, and is having problem breaking above the 200D MA (red line).

We're coming to an critical junction: the apex of a triangle that are made up of the upper trend line of the purple falling channel and the rising trend line ABCD.

Well, we don't really have to wait too long to see if prices are going to break down this important rising trend line and head towards "F" or break above the purple falling trend line and heading towards "E".

If it's heading towards "F", it'll do so in no uncertain manner. The decline after the break down of the rising trend line would likely to be fast and furious.

If prices are breaking above AND staying in the white space above the purple falling channel and this rising trend line, i'll consider buying Bitcoin and/or other crypto again (at i said in my previous post, before, I don't hold any digital coin at all at the moment).

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