I previously analysed all the chart patterns on the historic Bitcoin chart and found one of the most reliable to be the Pivot Point Reversal Uptrend pattern – with a 84% chance of meeting it’s price target.
Well guess what chart pattern we saw on Christmas day 2018? No other than the Pivot Point Reversal Uptrend!
The pattern broke out bearish on the 27th December 2018, which gives us a price target of USD $3,400, and a volatility stop loss of $4,420. At the time of writing bitcoin is currently trading at $4,010.
I’m still bullish long term for bitcoin though as it does solve the problem of trust that is needed in financial transactions. I believe we will see the previous highs of $20,000 retested again in the next year or two – hopefully sooner rather than later, but in the meantime you can short sell bitcoin to profit when the price drops.