Dear traders, we hope you all made some nice profits on BTC lately. Still, sadly, just like downtrends, uptrends also have to come to an end at some point. In order to determine if this is that moment, we invited guest analyst, Ivan Andrejević, to provide an alternative perspective. We’ll take a look at some of his Bitcoin long term chart analysis to see what can possibly happen in the upcoming weeks, months, and even years.
The Weekly Chart
As you can see, Ivan reveals that, on a weekly chart, Bitcoin is forming a descending triangle formation. By itself, it is a bearish formation that suggests that hard times may be upon us.
Obviously, a few hours ago, the descending resistance held its ground as sellers pushed the price down by 3.22% in a day. On the same weekly chart, it is possible to see that the MACD indicator passed below the neutral value. Moreover, the Stochastic oscillator is in a heavily overbought area, and the volume is evidently declining.
According to Ivan, this giant triangle on a Bitcoin long term chart may result in the price dumping all the way down to mid 1,000s. Yes, we know it seems unlikely at the moment and that this will be a very unpopular opinion, but read on anyway as we are about to elaborate.
Bitcoin Long Term Analysis Reveals the Rising Wedge
If we zoom out the weekly chart some more, it will reveal the huge rising wedge. Yes, the one we broke down from at the end of 2018.
In addition to Ivan’s initial theory, the chart shows that BItcoin never really tested the $1,000 support level. Looking at things from this perspective, it is quite possible, however horrific it may seem, that this wedge breakout / descending triangle, will eventually lead to that support.
As a trigger for that scenario, Ivan mentions that the 20MA is about to cross 50MA and provide an invaluable signal for the downtrend.
The 4-hour Chart
Now, let’s zoom in to take a peek at Anderjević’s 4-hour chart.
Clearly, Bitcoin travels the ascending channel formation. While these can be tricky to trade due to the fact that the price can break out or down, the current action seems more in favor of the latter.
The trend middle line began acting as resistance with higher highs pushing the price back towards the lower trend line. The MACD histogram is in the middle of the second positive wave and Stochastic is clearly showing the overbuying session. Therefore, according to Ivan’s charts, it is easier to imagine the break down than the breakout.
So much for the Bitcoin long term chart analysis. But many of our readers will be eager to know when they can expect the big move. Therefore, together with our gues analyst, we are taking another step deeper into the trend.
The Hourly Chart
The BTC/USD hourly chart reveals yet another rising wedge where the price recently hit another higher high. The wedge is narrowing and the volume acts accordingly, possibly announcing the short-term trend reversal.
Now, the rising wedge may prove as a trigger for what we described above. We say possibly because there is still much room left inside the descending triangle in the weekly chart. Nevertheless, before the price eventually beaks out or down from the giga-formation, traders will know how to trade inside it.
Bitcoin Long Term Analysis Conclusion
While Ivan Andrejević presented one possible direction and trading idea, it still may turn out the other way around. All of our readers should note that the weekly chart is a long interval so formations take a long time to develop and resolve. Inside these enormous formations, a lot of trading can be done.
Looking at Ivan’s in-depth technical analysis and our in-house pieces, it is undeniable that Bitcoin is looking to turn bearish. At least inside the triangle on a weekly interval. The triangle may still be broken before it reaches the support for the third time. If that happens, the real triangle formation will, in fact, never come to pass.
About the Analyst
Ivan is a long time cryptocurrency trader with a 5-year-long track record. He is also a founder and an administrator of a specialized crypto trading Facebook group Crypto Traders Balkan. You can always find more of his analysis in his TradingView channel.
You should look elsewhere for investment advice since this isn’t it. Even if it looks like it, it’s not. Cryptocurrencies are extremely volatile and risky speculations. Always do your own research. Consider consulting an investment professional prior to investing your money.