According to the Dow theory, in a downturn cycle, prices move in a form that lower the peak and the bottom
To switch to rising, the new peak should be higher than the previous peak and the new bottom should be higher than the previous bottom.
The current decline channel is devoted to lowering the peak and the bottom.
However, recent peak failed to reach the previous bottom. and it means the decline is likely to accelerate.
If we go down to around $ 6,000 without a rebound, it will be a safer strategy to enter from under $ 6,000, as the decline is accelerating.
However, this deceleration accelerating channel is not yet available
From a conservative point of view,
It is a good idea to open up the possibility of break $9000 resistance and reach to $10,000 resistance.
If we adhere to this conservative assumption, the price will make head and shoulder patterns and arrive at around $ 10,000 as follows.
The 'conservative assumption' here is,
- The idea that the down channel will maintain the inertia that it has not accelerated
- Idea that a peak will form on the lower point at least
Based.
In other words, if the recent upsurge does not break the gap of 9200, many people would think that the decline accelerated.
There is no reason to believe that the 'decline is accelerating' or 'maintaining an existing channel' at this point,
Therefore,
recommended buying point will be the point to be pressed after rising above the trend line of Head & shoulder pattern.
and selling point will be near $10,000.
The next important thing to look at is
Whether the bottom will form at a higher price than the bottom.
The transition to this ascending cycle will only allow the Bitcoin to move upwards as before.
*NOTIFICATION
i wrote this post with little help of google translation because of my poor English skill.
not sure you can understand fully.
if you find any awkward expression, please let me know and i will fix it.
분석 감사합니다.