ðBitcoin consolidation pattern! Read the description!
Hi friends, you've probably noticed that Bitcoin and cryptocurrencies start to rise or fall after consolidation. In this idea I will explain why consolidations happen, how to use this in cryptocurrency market analysis and where the next ATH for Bitcoin will be.
ðWhat is a consolidation? Consolidation is the small price range. Unlike a bullish or bearish trend, a consolidation is the absence of a trend. As we can see from the chart after consolidations price fall or rise for amazing %. In trading it calls "become volatile".
ðļWhy consolidations happen? Actually, consolidations happen because of traders sentiment. If the price don`t move in any side this is bad for most of them. As we know, the biggest part of traders earn on the huge price movements. So when the price start consolidate there are no bull or bear power and price move in the range.
ðļWhat happend when the price leave the consolidation range? Consolidation is like a spring. The harder you squeeze it, the more it bounces back. It's the same with the price. For example, Bitcoin starts to rise or fall a lot when it comes out of consolidation, the spring rebound, and this has happened in all the examples in Bitcoin's history.
ðļWhat will happen to BTC next? For more 516 days BTC price is in $29-64k consolidation range. Now we can see the largest consolidation since 2015-2016 before the price reached ATH in 2017.
ðIf we follow the rule that the longer the consolidation, the bigger the fall/rise, it's actually hard to predict what will happen next. In any case, Bitcoin will not be able to grow by 5000% in the next bull cycle because of its huge capitalization, but 600-900% growth from global lows ($20-26k) is quite possible.
ðĐTraders, what do you think about this pattern? What will be the next ATH for Bitcoin in the next bull cycle based on this rules? Write in the comments, let's discuss it together.
ðŧFriends, press the "like"ð button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
ðWhat is a consolidation? Consolidation is the small price range. Unlike a bullish or bearish trend, a consolidation is the absence of a trend. As we can see from the chart after consolidations price fall or rise for amazing %. In trading it calls "become volatile".
ðļWhy consolidations happen? Actually, consolidations happen because of traders sentiment. If the price don`t move in any side this is bad for most of them. As we know, the biggest part of traders earn on the huge price movements. So when the price start consolidate there are no bull or bear power and price move in the range.
ðļWhat happend when the price leave the consolidation range? Consolidation is like a spring. The harder you squeeze it, the more it bounces back. It's the same with the price. For example, Bitcoin starts to rise or fall a lot when it comes out of consolidation, the spring rebound, and this has happened in all the examples in Bitcoin's history.
ðļWhat will happen to BTC next? For more 516 days BTC price is in $29-64k consolidation range. Now we can see the largest consolidation since 2015-2016 before the price reached ATH in 2017.
ðIf we follow the rule that the longer the consolidation, the bigger the fall/rise, it's actually hard to predict what will happen next. In any case, Bitcoin will not be able to grow by 5000% in the next bull cycle because of its huge capitalization, but 600-900% growth from global lows ($20-26k) is quite possible.
ðĐTraders, what do you think about this pattern? What will be the next ATH for Bitcoin in the next bull cycle based on this rules? Write in the comments, let's discuss it together.
ðŧFriends, press the "like"ð button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
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