Opportunity in Bitcoin

"Technical analysis works in all asset class" be it stock market, money market, commodities or cryptocurrency. Similar analysis was done Bitcoin and want to share interesting observation.

This is Bitcoin monthly log chart. Bitcoin is in continuous uptrend from 2012 and its forming rounding top and then gives breakout and head higher. This technical patterns keeps repeating in future for particular asset class unless the trend breaks. Now lets see the current chart of bitcoin and compare with its last rounding top pattern.

Earlier consolidation phase duration was of 40 bars and after that it gave move from 1350 to 19600 (1350% rally in 2 years). Now again its facing resistance at previous top region at 19600 and had completed 36 bars of consolidation phase. Expecting it to give breakout anytime now and then head upwards. First target of this breakout is 36700 and stop loss would be 16000 on weekly closing basis. Holding duration is atleast 2 years.

I had shared my view on Bitcoin few days back when it was at 18500 and after that it gave $1000 move: Bitcoin view One can check above post.

Disclaimer: Bitcoin is very volatile asset class and give wild swing in either direction. So be prepared for all this and consult your financial advisor before taking any position in Bitcoin or any cryptocurrencies. My view is not for short term gains, its for long term investment.