BOTS crypto news week 14
Bitcoin is still in the consolidation pattern I described last week. Last week I indicated that support around 58,500 US dollars should hold for continuation to the upper blue supply line. This did not happen and Bitcoin fell 6% to around 55,000 US dollars.
What struck me about Bitcoin's correction is the fact that the lower blue demand line was not tested. Instead, Bitcoin found support around US$55,000. This is an indication that there is a lot of buy pressure .
Bitcoin has now formed an inverse head and shoulders pattern. The neckline of this pattern around 60,000 US dollars seems to be held as support.
It seems that Bitcoin is looking very healthy technically. If the neckline around 60,000 US dollars holds, then the measured move of the head and shoulders pattern will take us to a price of around 70,000 US dollars.
The chart below has been discussed twice before in a weekly update. In September 2020 Bitcoin broke out of a huge symmetrical triangle. The measured move of this symmetrical triangleis around 66,000 US dollars. I shared this for the first time when the price of Bitcoin was around 40,000 US dollars. At the time, there were people who had doubts about this. However, it is starting to become more and more plausible that Bitcoin will reach 66,000 US dollars.
In summary, things are looking very good for Bitcoin. The measured move of the head and shoulders pattern could theoretically take us to around 70,000 US dollars. And the symmetrical triangle where Bitcoin broke out in September has a measured move of around 66,000 US dollars. So those are the two potential targets for now.
Ethereum, like Bitcoin, is looking technically very good. In the previous update, I reported that Ethereum had broken out of a symmetrical triangle and that the measured move around the
2,500 US dollars. However, it was important that the support around 2,000 US dollars would hold. In the meantime, the support around 2,000 US dollars has held and the way to 2,500 US dollars seems to be open.
Total crypto market cap
Below we see the total cryptocurrency market cap. So this is a chart representing all the money which is in the crypto currency market. You can see that the total crypto market caphas broken out of a falling wedge. A falling wedge is normally a bearish chart pattern. This implies that there is a bigger chance that the break-out will be downward. When an assetdoes break out of such a pattern bullish, it indicates that there is high demand. The chart below is partly the reason why I think the coming months look very sunny for the cryptocurrency market.
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