BITCOIN The Hyperbola & Pitchfork break can end the year at 20k!

By November 11, 2020Bitcoin Business
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This study focuses on two very important underlying dynamics that have been dictating Bitcoin's price action for the past 1.5 year: The Pitchfork and the Hyperbola.

This comes at a time when Bitcoin is consolidating after a 1 month rally that broke above the $13865 High of June 26, 2019. So it is natural for traders and long-term investors alike to be in search for new clues that can give a meaningful projection on what's next.

** The Pitchfork **
I would like to begin with the Pitchfork tool from the June 2019 High - March 2020 Bottom. As you see on the chart, the 0.382 - 0.618 Fibonacci levels (blue zones) are forming essentially (what I've talked numerous times about since March), the dominant Channel Up on the 1D time-frame, that has took BTC from the lows on the March crash through a sustainable growth that just reached the Highs of today.

The 0.236 Fib (orange line) appears to be the Resistance and is the level that BTC currently got rejected on.

** The Hyperbola **
This rejection not only happened on the 0.236 Pitchfork Fib but also on the Hyperbolic pattern that started from the June High and seems to be the 'Underlying' Resistance trend-line all this time, with 7 successful rejections (red arrows) and only 1 (very marginal) breach (x noted on the chart).

** The 40° angle **
Every contact with that Hyperbola (even the marginal miss) ended up with a pull-back that ranges from the 0.236 Fib to as low as 0.618 Fib (not counting the March 07 - 12 COVID meltdown which is non-technical). The trend-line we need to keep an eye on the the 40° angle from each bottom. When this breaks, the price pulls back. This can take place above the Hyperbola and the 0.236 Pitchfork Fib, so be ready to apply it.

** The RSI Higher Highs trend-line **
An indicator that shows that the top can be formed this time above the 0.236 Pitch Fib for the first time since mid February, is the RSI . Since October 2019, it is on a Higher Highs pattern which has currently hasn't been filled. I get the impression that if the 0.236 Fib breaks, the RSI has enough strength to allow a move to the ATH ($20000) before the start of 2021. An extension of the 'Santa Rally' I talked about a few weeks back.

What do you think it is going to be? Are the Hyperbola and 0.236 Pitchfork Fib going to work again in sellers favor on the short-term or it is time for BTCUSD to break above them and test 20k? Feel free to share your work and let me know in the comments section!

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Bitcoin, looks price want break level and Hit 17190

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