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It is interesting to see that Bitcoin is strengthening seriously against USD (BTCUSD). Now that certain pairs and crosses are choppy, consolidating, and reversing, it is a surprise that Bitcoin is rallying significantly against USD. The cryptocurrency formed a solid base in the month of September. From that base a strong rally has started, which is still valid right now. This kind of a strong trending mode is attractive because it is an ideal market in which investors, trend-follower, position traders and swing followers can make good profits. Since the beginning of October till now, price has moved upwards by roughly 23,000 pips, prior to the current bearish correction in the market.
Those who were long on Bitcoin since October should be very happy right now. Great profits come when price is trending fast – a joy to directional traders. One of the best ways to make profits from the market is to trade an instrument which sincerely breaks out of a solid base. There must be a strong buying or selling pressure for this king of breakout to be significant, and that is what is needed to get rid of a trendless situation in the market.
It is perceived that strong buying or selling pressures are what can force price to leave a strong base and go northward or southward, thereby disregarding any support and resistance levels on bigger timeframes. The higher the timeframe is, the more serious a trend is, when located in the chart. Whenever a market is in a serious trending mode, just like Bitcoin, then there is a big momentum behind it.
Without mincing words, there is a clean Bullish Confirmation Pattern in the Bitcoin market. The bullish trend is vivid on the daily chart, the 4-hour chart and the hourly chart. Since price does not move in a straight line, the current bearish correction is normal, and the bullish trend is expected to resume soon, taking the price higher by several thousands of pips. There are accumulation territories at 304.00, 300.00 and 280.00; which would support the validity of the current bias as long as they are not breached to the downside. The months of November 2015 to April 2016 ought to favor highly predictable price movements on Bitcoin, even if things eventually turn bearish; the bearish movements ought to be directional.
However, the current bullish movement could hold out till the end of this year. In case the ongoing correction proves to be a pullback in the context of an uptrend, price would eventually reach the distribution territories at 485.00, 500.00 and 520.00.
NB: This article is for analytical purposes only. It is not meant to be a trading recommendation.
Souce: www.tallinex.com
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