This week we cover the Bitcoin Cycles from short as well as long term perspective. Much reasons to be bullish and hopeful, but at the same time we should have in mind that markets are a flow process and an ebb. Looking at the daily chart, we have seen the end to this beautiful trend that lasted more than one cycle, The breakout that lasted for more than 49 days without giving up the trend.

Fig.1.Bitcoin: Recorded the high of $19,600.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

The situation is a little tricky now, it’s a 50/50 thing now to make another high or another low.  From historically point of view, I will tell you, when you have a breakout from a fully stretched bull trend like this, there’s every reason to have a decent pull back, probably about 30%.

Fig.2. Bitcoin: A reversal up to 30% is imminent. Source: bitcoin.live

Looking at the 2 days reversal and a sharp decline in volume, I would say that, the bullish trend that lasted for almost 60 days may take time to rebounce. There will be series of rejections that may last to 2-3 months. I think, this is the best time to take a break and watch from the sideline. Expect some more grindings tilting towards $13.4k mark even though, there will be rejection.

Looking at the weekly chart, the 80% rally that produced 8 green candles in a row is a good time to take. We had a massive rally here, 8 green candles in a row is historical and we shouldn’t take things for granted.

Fig.3. Bitcoin: Massive rally here, 8 green candles in a row. Source: bitcoin.live

What played out in the year, 2017 may likely repeat. The 7 week rally may produce 30% decline which will take us to $13.4k mark. BTC has been known for its volatility for years now, ignore people telling you, we can’t have another 30% decline. We have to be extremely careful here.

We will definitely have another opportunity to take advantage of a bull market. Every counter move now is going to 30%.
From the monthly chart stand point, the 4 years cycle has given us a clear separation. We could stay at the 20k range for 2-3 months, the same happened 3 years ago. There will be a breakout to all time high but it’s going to take some time. We need to be patient.

Fig.4. Bitcoin: We could stay at the 20k range for 2-3 months. Source: bitcoin.live

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service