One of the virtues of observing the current market behaviour is to identify as well possible equilibrium status.
BITCOIN is totally blocked at the 6400$ Price level for days. This price support seems to be so strong that buyers and sellers are totally balanced.
Till today I was always expecting another drop on the BITCOIN price but seems that the bears doenot want to go lower from this point. This may lead to a different perspective now.
As you can see in the image below, since July Lower Low, we have had always a constant higher Low:
When you have this kind of trend, it used to suggest that the trend is shifting and it used to trigger the accumulation phase.
An Accumulation Phase is always preceded by a Consolidation Phase. This normally occurs when the downtrend starts to behave flatten, as well as the selling pressure starts to get reduced substantially.
As you can see in the chart below, during the Previous Long BEAR MARKET (2015), the price of BITCOIN get flat for weeks at 220$ level and then started the accumulation phase which formed the 1st wave of the BULL Cycle.
The duration of the consolidation phase is uncertain but I don't think we are going to see lower lows, instead, what we are going to see will be a sideways movement with a weak uptrend still, following the support shown at the previous chart (Lower Green TRENDLINE)
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently.
Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.
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by toofasteddie
