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Bitcoin is the rally over?

jeffriess
October 4, 2019
by Joseph Jeffriess, Market Analyst

All things come to an end? Is that’s what’s happening now with Bitcoin?

Bitcoin is known for its parabolic moves; that’s what can make it harder when analysing this market. What is clear as day is the descending triangle that formed from June to September. This was a very drawn out pattern that took months to complete. The pattern was confirmed with a breakout on the 24th of September when sellers finally took out the floor with a 1200 drop.

Currently, Bitcoin is consolidating after its breakout, and this is where it gets tricky for the trader. Is it too early to discount the last uptrend, could this be a correction that was always going to happen at some point? Yeh sure corrections happen, but the preceding triangle pattern is a worry as normally corrections don’t have such drawn-out consolidations at the top of the rally.

Do you believe in measured moves?

Pattern traders look at the width of the pattern for a possible projection area of the future breakout; this is not an exact science more of a guide. Looking at the daily chart of Bitcoin we can see that a measured move could suggest sellers could take price back to 5000. If this was to happen some could say that the entire trend could be under pressure.

Where has the demand gone? After that amazing run this year that saw Bitcoin retake 13,000 with parabolic speed, it is interesting that buyers failed to relaunch setting up the triangle consolidation that ended up breaking lower.

Time will tell if these new lower prices reignite the solid demand we saw earlier in the year or are we going to see a new lower grind as we did in 2018.

Bitcoin Daily Chart
BTCUSDDaily-1A

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