The rally of Bitcoin, which has been running since the beginning of February this year, is coming to a standstill these days. A look at the logarithmic 2-hour chart of Bitcoin (Bitstamp on TradingView) shows the current situation. Bitcoin has been in a big rising wedge since mid-May and is slowly but surely working its way into its tip. On Thursday, the Bitcoin reached the top of this wedge at 9,096 USD (Bitstamp) and was pushed back to exactly 8,000 USD (Bitstamp) to the bottom of the wedge in just a few hours. Obviously, the Bitcoin caused a lot of pain here at some bears. Good to know.
At the bottom of this 1.100 USD decline, Bitcoin is currently building a smaller rising wedge, that is just before its breakout. Rising wedges usually break down. If the small wedge breaks down, it will tear the big with it. And then we would have the start of a (in my opinion) larger correction. Maybe Bitcoin will manage to work its way up the big wedge again. Then the decision is postponed, but not lifted. We are up in a parabolic evolution with Bitcoin. The higher the Bitcoin increases, the greater the risk of a crash or a correction. That sounds friendlier.
In the region in which Bitcoin is currently located, life is too dangerous for me personally. Especially because I assume that the Bitcoin will correct properly sooner or later. With my eToro account CryptosWithB66, which underlies this blog as a real account, I have in the current, first (!) wave of Bitcoin and Altcoins upwards gradually closed my long positions, which I had opened almost to lows, step by step. I am currently sitting on 97% cash. Usually, the second (!) wave of an upward development becomes much more interesting than the first one. And I hope for a good start into this second wave in the coming weeks and possibly even months. If the coins correct, that’s not a matter of days. That too will draw.
To the absolute bulsl among us is said. Yes, the rally can go much further. Maybe up to 9,500 USD or even 10,000 USD. If the market makers want to get into this region, then that will happen. Then you should not miss the exit even at these heights, because otherwise the whole beautiful climb was not worth it.
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