Bitcoin Long Term Plan - two scenarios

21 Mei 2018

After receiving mass hype and exposure, bitcoin topped off at $20000, the same day bitcoin futures starting trading. Since then, bitcoin has been consolidating and forming a massive wedge. Completion of this wedge will indicate which way we can expect price action to swing. Volume has been on a slow and steady decline. The Kujin and 300-day moving average are acting as a strong support. Also, visible range shows that we are in the thick, which means a majority of orders were taken within this range, which means that this area is both the strongest support and biggest resistance. Worst case scenario we complete this wedge and break down to our strongest support at $5000. Best case scenario, we enter a post-consensus bull market and bitcoin breaks right through the wedge and confirms an upward price action. We would then look at our three biggest resistances which are the 200-day moving average, top of the cloud, and the $11750 area. I would expect some struggles around this area but a break above would take us straight to $20000. Other possible scenario, we complete this wedge and slowly form an uptrend. We would then have some liquidation battles at the big resistance and would ultimately watch the move from here. It is best to plan out your trading and all of the possible scenarios that can occur. I personally expect the most bullish scenario to happen, a post-consensus run straight to $20000 while alts moon. However if that doesn't happen, I am still prepared.