As shown on the
daily chart below,
Bitcoin has recently broken above several types of resistance, namely a downtrending Andrew's Pitchfork channel, and two downtrend 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 downtrend has reversed with any conviction. Otherwise, it may head towards
4000.
In the meantime, no doubt we'll see lots of wild daily price swings.
FYI: An interesting comparison...
