Bitcoin´s disbelief rally: 11.5k or 14k in the cards

Bitcoin´s disbelief rally: 11.5k or 14k in the cards

Bitcoin / U.S. dollar BITSTAMP:BTCUSD


Welcome!

In my last post (https://www.tradingview.com/chart/BTCUSD/0wChQ9k1-Bitcoin-has-just-confirmed-a-very-rare-30-buy-signal/), I pointed out that the 12H Ichimoku cloud had an extremely bullish TK cross and that I´m expecting far higher prices for Bitcoin . So far, we are seeing that happening but the question is whether this rally is coming to an end or do we have some more firepower behind it?

Funnily enough, the 3D chart suggests this rally has only just begun! What we see is an extremely bullish bollinger band expansion coming from the same bbw values we´ve seen in mayor market shifts from bullish to bearish or vice-versa. Is this a shift from a bear to a bull market in the making? Possibly, yes. Anyhow, there are plenty more reasons on why I think this particular rally is going higher and if you´re interested, you´re welcome to check my Twitter:

https://twitter.com/mansasuma

So how high can we go with this one?

Well, obviously everyone has a descending channel (purple) drawn into their charts, which puts the target of the rally anywhere between 11 – 12k. While this is my primary consideration at the moment as well, I am here to show you that TA wise there is another possibility:

while in a descending channel , Bitcoin is also in a big head and shoulders pattern (white). A pattern that has failed to produce further downside. What very few analysts know, is that failed h&s patterns do have targets as well. In this case, TA shows BTC could rally to as high as the 13-14k region in the coming weeks!

Obviously nothing is certain and while 11.5 – 12k is my primary target area, don´t be surprised if we go much higher – TA shows us it can be done.

Idea invalidation: when does this rally fail? I´d say if we have a daily close below 8k to maybe even 8.2k we are going to 7k region and highly likely to new lows. Not leaning to that happening at all for now though.

Take care.