BITCOIN FINALLY BOTTOMED......A NEW MARKET STRUCTURE FORMING
Jumping off my last BTC update, i did establish that we successfully got our higher low formation both on the weekly and daily after a flush break below the $6500 support area.
However, with the bounce from the $6200 support area, back to the $6500 consolidation area, coupled with the flush break out of the descending triangle on a sideways move, the bearish market structure (descending triangle formation) seems to have been completely invalidated, and a new market structure is gradually forming.........as the bears seems to have lost their strength and grip of the market.
Since Feb 6 2018 when price first bottomed at 6k, we hard a close of the candle at $6800 back then, and since June 2018, most of the price action has been between $6800-$62000 with stronger consolidation around $6500, especially after we bottomed out at 5800.......this i believe is not a coincidence.
Below are few reasons i believe the market has bottomed out.......:
Volume is completely down
The present downtrend has lost its steam due to a very weak/no volatility.
Minning cost per Bitcoin is about $7300 today, and the recent Minning difficulty adjustment did not go up as usual, but instead went down by 3.6%, which means Minning as of today is no longer profitable for most Minners, except for the big players like Bitman.
FUD stemming from bad news has diminished.
Sentiments are overly bearish at the moment as the public has lost interest , with many crypto enthusiasts still believing price will crash further. Moreover, research has shown that when sentiments are overly bearish, the market most times moves in opposite direction.
The present consolidation is at this base area is forming into a rounded bottom that will usher in an uptrend
Fundamentals are getting stronger by the day.
Again, comparing the 2013/2014 bear market with the present market, Price broke below the descending triangle back in 2014 because the horizontal support of the descending triangle was tested many times.
However, the present price pattern is different. Price only touched the horizontal support of this present descending triangle twice from the $5800 bottom, and has been on a consistent higher low formation from the bottom with price bouncing off the new uptrend line support and finally breaking out of the 11 months descending triangle thus invalidating the present bearish market structure.
With recent report showing that OTC market volume is 3x that of the exchanges, i believe the 6k support is presently being defended and price is being held in equilibrium by whales and institutions in order to accumulate as much BTC over the counter.
Therefore, i see Bitcoin's price consolidating strongly between $6250-$6500 and having support along the uptrend line support, until the whales and institutions finally hit the exchanges to bring in the needed volume for an uptrend market.
However, with the bounce from the $6200 support area, back to the $6500 consolidation area, coupled with the flush break out of the descending triangle on a sideways move, the bearish market structure (descending triangle formation) seems to have been completely invalidated, and a new market structure is gradually forming.........as the bears seems to have lost their strength and grip of the market.
Since Feb 6 2018 when price first bottomed at 6k, we hard a close of the candle at $6800 back then, and since June 2018, most of the price action has been between $6800-$62000 with stronger consolidation around $6500, especially after we bottomed out at 5800.......this i believe is not a coincidence.
Below are few reasons i believe the market has bottomed out.......:
Volume is completely down
The present downtrend has lost its steam due to a very weak/no volatility.
Minning cost per Bitcoin is about $7300 today, and the recent Minning difficulty adjustment did not go up as usual, but instead went down by 3.6%, which means Minning as of today is no longer profitable for most Minners, except for the big players like Bitman.
FUD stemming from bad news has diminished.
Sentiments are overly bearish at the moment as the public has lost interest , with many crypto enthusiasts still believing price will crash further. Moreover, research has shown that when sentiments are overly bearish, the market most times moves in opposite direction.
The present consolidation is at this base area is forming into a rounded bottom that will usher in an uptrend
Fundamentals are getting stronger by the day.
Again, comparing the 2013/2014 bear market with the present market, Price broke below the descending triangle back in 2014 because the horizontal support of the descending triangle was tested many times.
However, the present price pattern is different. Price only touched the horizontal support of this present descending triangle twice from the $5800 bottom, and has been on a consistent higher low formation from the bottom with price bouncing off the new uptrend line support and finally breaking out of the 11 months descending triangle thus invalidating the present bearish market structure.
With recent report showing that OTC market volume is 3x that of the exchanges, i believe the 6k support is presently being defended and price is being held in equilibrium by whales and institutions in order to accumulate as much BTC over the counter.
Therefore, i see Bitcoin's price consolidating strongly between $6250-$6500 and having support along the uptrend line support, until the whales and institutions finally hit the exchanges to bring in the needed volume for an uptrend market.
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