Bitcoin Price Movement and Analysis 6.27.2017

Hey, Cache here with some price analysis on Bitcoin.

Over the past 10 weeks, we’ve seen some serious movements up, from a trough of 897, all the way up 235~% to a new ATH of $2980 on Bitstamp (BITS). From there, we’ve had a bit of a correction period back down to low 2300s. Here are my thoughts on what has happened and what is going to happen, based off technical analysis. This run-up has been nice for both Bitcoin hodlers and the entire cryptocurrency market as a whole, seeing big gains for both parties. We’ve continued to have massive growth as more and more people have found out about the cryptocurrency asset class due to coverage by big media outlets, along with the ever-growing Ethereum ICO bubble, bringing in money by the boatloads to invest in these high-yield speculative projects.

Divergences In The Trend

On the chart, we saw bearish divergence, higher highs, lower highs on the RSI, all the way up, which accounts for this correction period, as it ended at the top of this run, and is playing out now. However, we have this stronger underlying hidden bullish divergence, shown by the higher lows and the lower lows on the RSI, that we will have a strong bounce and continuation of bull trend once we head down to support.

Using Elliott Wave Principle

On the chart, we see three impulse waves up, three corrective, and then a set up for an ABC correction wave back down to support before heading back up for more, as our underlying hidden bullish divergence indicates.

If we use the model above the price data, showing the waves, then we should be heading down to our line on the price data that indicates point 4 in the wave up, which should act as support.

Using Patterns And Trend-Lines

On the chart, a bull flag, a continuation pattern, is visible. I kept in the lines representing the points of the EW from the last chart. I’m seeing a possible descending triangle here, which should breakdown all the way to support around 2050 to possibly 1850 where the fourth and first points in the Elliott wave pattern are. From there, we should see a bounce from that support up to top green line of bull flag, which is also resistance, and after it breaks that, we should be through and onto testing new highs soon.

The Complete Chart, along with possible medium-term targets.

On here, all of the steps from the previous charts are visible, including a data and price range. Using that along with the measure rule from whenever or wherever this bull flag does decide to break up from, which based off the break-out I had shown, would put the price at $4300 by October 4th, 2017.

Thanks for taking the time to read my first in-depth analysis of bitcoin’s price data as I see it. If you enjoyed the read, feel free to tip me $BTC here : 1LBBrgiMcCSwYu7HF4pBj26DRZziz2oe7e

This is my first post on Medium, and I’m not entirely sure on what type of content I’ll be pushing out in the future, but if you want to ask/say something, I’m on twitter @cacheboi, feel free to shoot me a message!

Updates :