The speculated BARR Pattern has evolved since its first sighting (on April 15), which provided a possible confirmation of the formation of the pattern. BARR pattern, as the name suggests, takes place in three phases: the first phase is when the price leads-in and the second is when the price bumps, finally followed by a run.
The previous article mentioned the formation of “Lead-in phase” and “Bump phase”; however, the confirmation for a “throwback to trendline” was pending. As of May 05, 2019, the prices evolved enough to confirm the BARR pattern.
BTC’s prices have confirmed the throwback to the trendline and have successfully started the next phase of the pattern- “Uphill run”. Technically speaking, the pattern will undergo a rally, the next major resistance for Bitcoin is a range that extends from $6.100 to $6,800.
This range acted as a support for Bitcoin during its downtrend from 2017, which was tested six times, over the course of 10 months, hence this resistance will be a tough one to break.
Considering the above, the price of Bitcoin can surge from anywhere between $6,100 and $6,700 and then pull back. The range of the pullback is unknown, as of now.
However, assuming Bitcoin performs the same move [double bottom] as it did in 2015, then the price will see a major pullback to $3,500.
Bitcoin’s price has displayed a similar fractal pattern as the DotCom bubble, Qualcomm stocks, and others; if it continues to do the same, the price could easily pull back to as low as $3,000 or even lower.
Akash is your usual Mechie with an unusual interest in cryptos and day trading,