Not an awful lot of changed besides that the range is becoming more narrow at $6200 – $6800.
The latter is an important price level as it’s where the EMA100 on the weekly chart resides, and that isn’t changing anytime soon.
The earliest date to officially break out of this would be the 19th of October as you can see on the chart above.
One of the most obvious benefits of that is that the swings become rather predictable.
We briefly touched $6800 an hour ago, and last night as well, now the most likely course is to drop towards $6200 again. Giving all the indicators the opportunity to drop till bottom rates because as you can see right now on the 4-hour chart. The RSI is pretty much overbought.
This obviously won’t go over one night ice.
The monthly chart updates in only three days from now so we might get some unexpected action there so I keep my eyes out and will update you accordingly.
Assumptions can be harmful
It’s very easy to assume that once we reach the point where the two lines cross that the bull-run will start right there.
But that’s not a fact at all, it could easily go the other way, and crash even deeper.
Let’s be honest, has the use of bitcoin increased? Has the popularity increased? I don’t think so.
So why should the price go up is what I keep on wondering myself.
Take a look at the chart below:
Those green lines are the same lines in the opening post but this time we are looking at the weekly chart instead of the 4-hour chart.
This to show you how significant those trend lines are as they go way back!
I also added a Fibonacci layover where I decided to ignore the shadows (wicks) of the candlesticks to get a true picture of where we are.
That’s a bit of a frightening sight, isn’t it? We’ve been below the previous FIB level for almost nine weeks now so the most logical course of action would be to drop to the level below it, at $4700-4800.
You can be sure that when that happens that it will drag all the altcoins with it, yes once again, so I advise you to be very careful when this date, 19 October, nears!