Bitcoin is close to testing a really important trendline that is holding for 5 years now. Expect volatility to heat up next week and also in the 2nd half of November. If Bitcoin will be able to respect this 5 year rising trendline by January 1st, we see BTC resolve much higher in 2023. It would be the pre-requisite for our crypto predictions 2023 to come true.
As a refresher, we identified January 1st, 2023 as a c crucial date for BTC. This is why:
Look at the triangle pattern that the chart is creating (please focus on the red trendlines). Both trendlines coincide on Jan 1st, 2023. No coincide, there is an additional reason (which we won’t cover in this blog post) why it’s an important date. In fact, there is plenty of evidence why Jan 1st, 2023 is a key date. That said, we are not predicting a specific price point for Jan 1st. All we are saying is that the date is key and we need to evaluate price as we get closer to that date.
BTC is respecting its really important 19518 level, one we want to see respected on a 3 to 5 day closing basis.
Here is one more interesting and important trendline that we close watch. It goes back 5 years in time and originated right at the end of the 2015 consolidation when BTC broke out above 270 USD.
Astute readers might argue that one trendline is not enough to make a bullish case. While we agree that one simple trendline is not sufficient, we certainly will disagree with those that believe that more information contributes to better decisions.
Less is more, also as it relates to relevant data points for making decisions. We explained this in 7 Secrets of Successful Investing.
The data points that matter for BTC as we head into 2023: the trend of the U.S. Dollar, broad markets trends (primarily the Nasdaq), the structure and patterns on the BTC chart. There is not much more to help you understand if and when crypto is worth your time and capital.
We track those relevant leading indicators in our weekly crypto alerts sent to premium crypto investing members.