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2 Potential Bitcoin Scenarios

Published 04/13/2018, 02:38 PM
Updated 07/09/2023, 06:31 AM

As shown on the daily chart below, bitcoin has recently broken above several types of resistance, namely a down-trending Andrew's Pitchfork channel and two down-trend lines.

There are two potential scenarios for bitcoin relative to the pitchfork channel:

  1. price spikes up to its 200% Fibonacci outer edge, which is currently around the 10000 level, or
  2. price drops back down to its 100% Fib channel edge, which is currently around 4000.

Keep an eye on the momentum indicator. It's in the process of forming a higher swing high, hinting of further strength ahead, but we'd need to see a series of higher price-swing highs and lows to suggest that its down-trend has reversed with any conviction. Otherwise, it may head toward 4000.

In the meantime, no doubt we'll see lots of wild daily price swings.

Bitcoin/U.S. Dollar

Latest comments

Up?
Yep, it will go up or down
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