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Crypto Corner

Bitcoin chart update: 20 Jan 2018

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Well, Bitcoin's price action did not stay in the pennant that I showed last week. The big sell off a few days ago broke the resistance of the rising floor and damaged that setup.

namor's Vegas Boxer account-20jan18-flag-fail-jpg

However, the sell off stabilized in time to setup a new descending channel that looks like a bull flag on the 1-day chart (every candlestick is 24 hours of trading).

namor's Vegas Boxer account-20jan18-new-bull-flag-jpg

I added the MACD and RSI as additional indicators at the bottom of the chart. Both are suggesting a run up in price is very possible in the immediate short term (over the next few days). I would not be surprised to see Bitcoin's price increase to the top of the descending channel over that timeframe, bringing it to around $15,000, depending on how long it takes and how close it gets to the ceiling. Since bull flags are inherently bullish, we could see a continued breakout to the upside from there, or a little more consolidation in the channel before the breakout. If we don't get the breakout on this swing up, the flag will start to get long and may damage the potential for the setup.

Something else that I thought was significant to note is that Bitcoin has had an early year sell of every year for the last 5 years. In fact, the last bear market for Bitcoin was from November 2013 to April 2015 when the price dropped from $1163 to $220 over a year and a half. Since then, we've had (obviously) massive gains in Bitcoin and crypto currency in general every year, despite an annual January sell off. It looks like we are setting up for that trend to continue.


My referral links:

Hashflare cloud mining
Binance, a crypto currency exchange
Crypterra cloud mining
Changelly to buy and exchange crypto

The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the coins mentioned herein based on this information. We may trade these coins differently than discussed above. We use additional methods and strategies to determine fund position.

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