BTC broader picture
Please feel free to comment or challenge me on my TA. If you like my idea, please leave a like to show support.
--------------------------------------------------------------------
When we take a broader look into Bitcoin, we can see that this symmetrical triangle (or slightly ascending traingle) has held pretty nicely for the past three years (approx.) with several retests of both the support and resistance lines. However, as of late we can see Bitcoin is consolidating near the resistance line, which is not so strange.
Bitcoin is willing to break out of the triangle (it tried a few weeks back when we saw a daily close at $10300), but is confronted with major bearish elements:
- Declining volume
- Double failed test of the top of the triangle in the past two months
- AND psychological level of $10.000
What I expect to happen again is a breakout of the channel, with a rapid move towards the higher 10K-area. A lot of limit orders will be fullfilled and we retrace back towards the 9K levels.
Another scenario starts of exactly the same, but takes us past 10K in an extremely rapid fashion, followed by a massive volume increase. In this case we will see a strong S/R flip and a beautiful weekly close above 10K.
Another final thing to take into account: Stochastic has almost fully dipped below the 80 level, which historically meant: more bearish momentum and downward price action. (Vertical lines)
What do you believe will happen next?
Will we first see 11K or 7K?
--------------------------------------------------------------------
When we take a broader look into Bitcoin, we can see that this symmetrical triangle (or slightly ascending traingle) has held pretty nicely for the past three years (approx.) with several retests of both the support and resistance lines. However, as of late we can see Bitcoin is consolidating near the resistance line, which is not so strange.
Bitcoin is willing to break out of the triangle (it tried a few weeks back when we saw a daily close at $10300), but is confronted with major bearish elements:
- Declining volume
- Double failed test of the top of the triangle in the past two months
- AND psychological level of $10.000
What I expect to happen again is a breakout of the channel, with a rapid move towards the higher 10K-area. A lot of limit orders will be fullfilled and we retrace back towards the 9K levels.
Another scenario starts of exactly the same, but takes us past 10K in an extremely rapid fashion, followed by a massive volume increase. In this case we will see a strong S/R flip and a beautiful weekly close above 10K.
Another final thing to take into account: Stochastic has almost fully dipped below the 80 level, which historically meant: more bearish momentum and downward price action. (Vertical lines)
What do you believe will happen next?
Will we first see 11K or 7K?
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.