Long Term Update: Weekly View

XBTUSD Weekly chart with price regression channel

This is a weekly chart since the bottom of March, 2015; the underlying weekly tendency is still up since then.
Inside this long term up channel there are secondary tendencies or cycles clearly visibile and highlighted by the alma moving average.

Last up cycle ended on the top just outside the high volatility zone in June 2016. After 3 months we are still in a secondary  down cycle inside a big up cycle. As i’ve told you in previous updates the maximum extension of this down cycle is at $420 as indicated in the above chart, i doubt we will see weakness below this important level.

At the moment the price is exactly at the middle point of the price regression channel and it’s very hard to say which direction it’ll take, in any case if there will be a new crash down to $420 i’ll further increase my long term position; at the same time if XBTUSD start to stay consistently below $420 i’ve to conclude that the long term up cycle is over and a bear market is ahead.

As i’ve said many times in the past years i don’t believe in a prolonged bear market because bitcoin and its network are healthy and just at the beginning of their life. Key is patience.

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