2 Potential Bitcoin Scenarios
Candy Matheson | Apr 13, 2018 02:38PM ET
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:
- price spikes up to its 200% Fibonacci outer edge, which is currently around the 10000 level, or
- 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.
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