Bitcoin (BTC) is preparing to make its big move up as price touches the bottom of the bullish pennant it has been trading in. The reason this pennant is more likely to break to the upside than the downside is because the price was trading up just before it entered the pennant. This can be seen on the 4H chart for BTC/USD as the quick recovery after November, 2018 lows. The price did not have the strength to continue trading higher so it had to fall to the bottom of the pennant to consolidate over the weeks ahead before so it may finally break out to the upside. Bitcoin (BTC) is trading in oversold territory as shown on the 4H chart and there is a high probability of a quick correction to the upside.
If Bitcoin (BTC) were to follow the market cycle of 2014-15, then it would be expected to rise all the way towards the previous market structure around $6,000. It could reach around $6,200 before ultimately falling again possibly towards a new yearly low. The current price of Bitcoin (BTC) presents the ideal risk/reward setup for a long entry. If you believe in the long term prospects of Bitcoin (BTC), then accumulating at current levels is a very good idea. That being said, there is always a risk that the price may break to the downside instead of the upside. However, if you want to be safe, it comes at a price. You will miss the current price and will have to buy around $4,000 or higher if it does break to the upside.
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