Typically for Bitcoin to be in a bull market and for it to be confirmed the 20 week moving average which is the yellow line must be above the red line which is the 50 week moving average
This would leave the four main moving averages in the correct alignment with the lowest number at the top and the highest number at the bottom .
We have at the moment as was shown prior to the last bull run along line of resistance which is shown in the photograph as the wall of no . I borrow this phrase from another , it’s not my own
From a broad perspective it can be argued we have a massive bull Pennant on the weekly chart within which there is a broadening descending wedge
I have attached a JPEG of what a broadening descending wedge normally does
I have marked the touches on the descending broadening wedge on the char
Taking on board all relevant information There are a number of things at play
Firstly we have a possible inverse head and shoulders on the weekly chart currently being constructed which is bullish in nature.
Secondly we have a broadening descending wedge as shown .
Thirdly we have a bull Pennant the bottom of which is the 200 week moving average which historically has been a fundamental last line of support for Bitcoin bear markets
From a visible perspective and without any technical knowledge one can see or one can observe the fact that resolution will come before the end of this calendar year or early next year . Of that there is no doubt . Keep in mind CME contracts December.
if Bitcoin is to begin a bull run It must break out of the wedge and out of the macro green line as shown on the chart and retest it as it did back in 2015
Typically the retest is a point of entry for many investors technically educated or otherwise in the markets , opinion only , non-financial advice .
It should be noted that the weekly is showing lower highs and thus we are technically in a downtrend.
For the new investor or someone looking to enter the market , until the downtrend is broken anything can and will happen to the price especially with the shenanigans observed in the US stock market .
Negative interest rates, the industrial scale printing of money and many third world countries around the world having lost the inherent value of their own national currency along with the passing of wealth from the old to the new will all be drivers moving forward in this digital age
Without question Governments will introduce their own digital currencies.
I would put to you that Fiat currency is actually already digital and is nothing more than a number on a database and as such is Fiat trash .
Fiat currency once it unpegged from gold had no proof of work.
In other words it was not correlated to human metabolism
The defining feature of Bitcoin among many other excellent attributes is it’s proof of work via its cost of production .
Bitcoin has many critics but nobody can argue with the fact that it costs significant amount of money to produce and mine. Bitcoin This is its fundamental and saving grace besides it increasing scarcity.
The biggest nerve in the human body is the hip pocket nerve otherwise known as greed .
Pulling it all together IF Bitcoin breaks to the upside based on underlying excellent fundamentals, greed and media attention will do the rest . Sentiment .
At some point there will be excitement possibly unlike you have ever seen In the investment world as we near the top of yet another Bitcoin bull run (conversely we may have great fear if it crashes)
If you have not educated yourself to a point where you have a plan written down at home. A plan you execute when your emotions are running high ,you stand the risk ,the very great risk of failure as an investor.
I would urge you now during this time of consolidation and relative lack of volatility within the market to make a plan
The American markets will come and they will go but at the end of the day as Alex would say money needs a home and money is greedy.
Bitcoin for all of the above reasons and so much more represents a wonderful speculation
The greatest hedge in financial history .