Using logaritmic scales might help with understanding the bigger picture of why for example Bitcoin is shooting like a rocket. Take a look at the first image below, the only thing it actually tells us is that the graph is showing exponential growth. So, analysis based on linear scales is not going to help us much.
Pay attention to the blue circles and the black exponential line. This is how they turn out on a logaritmic scale:
The blue circles are now more centered and shows us a more thorough consolidation than with the linear scale. When comparing the first wave up (blue arrow) to the 2nd wave starting from the breakout, there is still lots of more upward potential. However, a correction could mean going back to approx. 3500.
Take a look at the black exponential line from the first picture as well; this comes out perfectly lineair at the logaritmic scale.
Choose "log" at the right bottom of your interactive chart to use the logaritmic scale. Pay attention to the Y-axis to understand the difference.
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Bitcoin is currently making another corrective pattern on the logaritmic scale. I don't necessarily think the blue support line will be significant, but I'm quite confident Bitcoin will see new highs in 6 - 12 months time. However, as commented earlier, 3500 - 4000 is possible on short term (1 - 3 months).
a major consolidation will happen. although no one knows when even though many TA expect it soon.
Driekeerdre1
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@davidlxchen, Thanks for commenting, there is always a change but this actually shows that bitcoin has been in a long consolidation between 2014 and 2016. The rally before could be a precedent of what's coming. Currently I think TA does not show any signs of consolidation yet.
When you draw the resistance parallel to the support and lay it over the top in 2014, you get an idea of where this might be heading.. It's actually pretty much on schedule of seeing 25k/30k at the end of this year.