Two massive trendlines in bitcoin that go all the way back to 2016 are due to cross at this point.
That might explain the recent sideways movement that goes back all to way to early May and if we ignore the external sharp V March-April, it goes all the way back to February.
What we see above is that when we zoom out there’s a general very long term upwards trend.
More ‘recently’ however, that being for the past nearly three years, there has been a ‘localized’ downwards trend that has still ‘respected’ the very long term upwards trend.
These two are now to collide, with some suggesting ethereum has seen a breakout, but obviously you can’t predict the price so whether a fakeout or a real breakout is for hindsight.
For the present we have to be satisfied with only saying that there’s an ongoing very big clash between two huge trends with one of them ‘due’ for gaining the upper hand.
Will the long term trend hold, or will the more recent one hold sway? More importantly for the near term, which one will fool more?
Markets being markets they can easily make it look like the downtrend won when it’s just a blip, or vice versa.
We won’t know obviously
until we pass ath, until we won’t care about what happened. That’s because in the short term prices engage in random walks, but when you zoom out you can ignore that noise and see the general trend.
Likewise if we zoom in then you’d probably think we’re in an uptrend with the market just taking a break.
Bitcoin has tippled in two months. All those whining stonks traders have probably not seen a trippling in their entire life, let alone in two months.
So that it takes a break here is only encouraging and maybe even good news because we can see above bears have tried and tried to make it dive, but bulls have clearly formed an iron wall.
How long this stand off will continue, remains to be seen. It can go on for months as there have definitely been three months sideways.
The longest one was arguably in 2015 when it sidewayed for a whole year. 2019 was pretty much a sideway year as well, but both are quite different than the current sideways.
The difference being those two were after months of price falling, while this one might be more just a break after a price rise.
Still if we had to bet, we’d say this sideway may go on for at least a few more weeks, but obviously it might not.
It might make a decision instead as bears maybe give ground or bulls have a tactical retreat or as we think, bitcoin just goes for a swim instead.
Because the pjandjamik can’t do nuffin to the boy, so why not. He needs to get fit, big and strong, as there may be a very long mountain to climb once he’s done with his swimming.