Bitcoin’s last major resistance before 10k
Bitcoin remains above the 3/8th Major Harmonic of 7562.13. Broad support and consolidation against the final major resistance zone of 8822.31 may indicate a breakdown or a breakup.
Bitcoin’s final major resistance before targeting 10k
Bitcoin’s moves in 2019 have been impressive. I have to admit that it has exceeded my expectations – not in price but in the speed of the moves. Also, the price action has been very strong and authentic – no false pumps or fake drives higher. These are strong and sustained moves. Right now, Bitcoin is at a crossroads. It blasted through the 3/8th Major Harmonic of 7562.13 and has now been halted against the 4/8th inner harmonic at 8822.31. This 4/8th Harmonic is extremely important because it is the 50% level between the 3/8th Major Harmonic and the most important value ahead: the 4/8th Major Harmonic at 10082.50. This is an extremely important level Bitcoin is trading against and will more than likely set the tone for the next 3-months.
Breakout or breakdown?
I have been predicting some strong resistance zones for all of 2019 and have forecasted some deeper retracements – only to have Bitcoin to the total opposite. I am afraid that if I change my tune and convert from perma-bull to crazy-bull, I’ll get burned. There is a massive amount of resistance where Bitcoin is trading at right now. The 4/8th Inner Harmonic is just one of those levels. The second resistance level is the 45-degree (green diagonal line near price). This angle represents equilibrium and ‘fair value’. This is going to sound weird given the fast and massive drive up – but according to that 45-degree angle Bitcoin is neither overbought or oversold right now. It’s neutral. The third resistance zone here is, in my opinion, the most important: the 6/8th time-harmonic (red vertical line). This time-harmonic is a natural and powerful pivot which acts as a source of resistance in time to the trend in force.
The image above shows a curved green line – that is a parabolic trend line. Most readers probably don’t need to know that Bitcoin has experienced a parabolic rise since the start of 2019. And any trader or investor in cryptocurrencies is probably very afraid of that word – because it signals doom and triggers thoughts of a bear market. There’s a couple of points I want to make about this.
- Bitcoin has frequent parabolic moves – they are just part of how it moves and operates.
- Parabolic moves can last a long time – they are the most dangerous type of price action to trade against.
While there is a myriad of reasons why Bitcoin would experience a big drop and good -25% move for some profit, I am no longer convinced that this will happen until at least the 10k value area is reached. The supportive buying on dips and a clear rejection of any major move down have really made any perma-bears of Bitcoin go into hibernation. I mean, just look at today’s candlestick: lots of buying pressure. And I want to call your attention to something I mentioned above: Bitcoin is trading at the 45-degree angle. We could see just another new bull move from this level. Yes, Bitcoin could just be setting up for another +50% to +100% move higher.