On the logscale chart going back to 2011, the projection of the bottom is around $30. The pattern drawn in the OP on the logscale chart shows the price action broke down through the bottom support line as of the start of 2015, thus the next line of support is the long-term line.
I place high odds on Bitcoin breaking back below $100, because there are still too many
hyper-proud, overconfident Bitcoin fanatics who don't understand basic facts. Capitulation will likely be some where in the double digits because we need blood in the streets and below $100 is the psychological pain/panic/despair threshold for many.
I am expecting a potential bounce to $320 (to the upper line of the wedge to touch support that became resistance) before the waterfall (stampede) decline to the capitulation bottom.
If we fail to break 250 in this move, your scenario is very probable.
On the other hand, based on my analysis, if we do penetrate this then it is the beginning of a new bull market..
EDIT: Though I have to repeat that since China entered, we really had no new blood buying - this has changed with GBTC and XBT ETN (& probably with COIN ETF) and I seriously doubt it will be easy for supply to overtake demand and NOT break 250.
THIS is bitcoin. There will always be overconfident Bitcoin fanatics. Even at $10 many early adopters sit on massive (cashed out) profits. I wrote some time ago, that this board shouldn't be used for sentiment analysis anymore as it degnerated to an (entertaining) puppet show. If you want to get a feeling, where the market stands now, you have to get out of this realm.
Not sure if you agree with me or not but my analysis is based not on fundamentals or sentiment:
https://bitcointalksearch.org/topic/pnf-ta-1064374Now, bitcoin fanatics & the forum and their interaction with the price are two topics for analysis that are huge on their own !
Finally, many traders/investors @ NYSE/NASDAQ will buy regardless if the current price is high or low for various analysts and this is a DEMAND increase.
I don't see any increase in SUPPLY though, excluding miners and the short sellers who act more short term (opportunistically) anyway...
EDIT: That said I will open some shorts if we reach the resistance at 245 to hedge (stoploss 247) and will put 240 as a stoploss for my longs.
So I am not a btc fanatic in any way, I am looking to make as much profit as I can from this market whether it moves up or down.