Last BITCOIN rise may have confirmed, IMO, the entry in the Accumulation Phase. This period of time may take weeks or months and it is characterized by a movement between range of price which can be clearly identified in the Daily Chart.
For instance, on 2015, BITCOIN defined the Key levels as follows:
Upper Resistance Level were tested at least three times during this period while the Bottom Support was tested twice, forming a double bottom, W-Pattern which is a bullish pattern. There was as well an intermediate support on which BTC rebounded a few time too.
On 2015, the accumulation phase lasted 10 months.
Currently, BITCOIN marked the following key levels:
- Upper Main Resistance: around 4300 USD range
- Lower Main Support: Our Lowest point, around 3250 USD
- Possible Support of RISING BOTTOMS: The trend line formed by the main lows
- Minor Levels: Support at 3460 USD and Resistance 4000 USD
Can we trade this levels? Obviously yes, I would suggest to do it with small size until the new trend will be confirmed.
How long is going to last this phase? As I said, it is going to take long. On 2015 was 10 months, I would not expect less here…
What we are going to see is a sort of wave cycles testing both main trendlines… So, be patience because we are going to see more of the following:
Breaking the upper line may confirm the end of the phase if it does with high volume.