Bitcoin consolidation or top formation
Updated
Bitcoin broke the bear flag formation we had since a week ago since the 10500/600 broke. This is a first bullish sign, but doesn't mean bears are gone. I see it more as if the bears took the pressure off than being bullish now. As long as we move below the 11200/300, i think the bears are still in favor. It's even possible that the high is already set as well at 10950. I am not going to make any short term predictions now.
Think the curved blue line on the left is important. It's a subjective line, so where to put is not easy, but think the 11200/300 range is a good level. That thick blue line i have used past 2 months, might also still have some weight, but i don't see it being very powerful anymore. So when bulls can reach that line again, it might force some sideways action, but could easily break it upwards eventually.
So i think that when the 11300 breaks (as a first good step), the bulls are probably in favor again and that bullish price action for the coming weeks/months becomes more likely as well. 11.600 is also still a big level for the bull to break. The 12.000ish has been an important several times the past months, so i think its best to assume that zone will still have a lot of weight as well.
On the downside, that curved line on the left seems to be real, so looks like that when the 10600/550 breaks, we could drop towards the 10.000ish again. I mentioned week ago, that 9500 was a possible higher low formation and so far it has been the low. Which means, that bulls have to hold the 9800/9600 from now on. Think if that breaks, the 9500 won't hold and therefore it will become very likely to see 8K prices or even lower, as i mentioned in the previous analysis.
So, 10600 is a level now, 10400 might be a level as well. 10.000ish is a big level also and i think that as soon as the 9800ish starts to crack, that bulls need to be very careful. In theory it can drop to 9500 as well, but i assume the 9700 should already be the maximum. So when the 9700 breaks, doesn't mean i am going to fully bet on 8K prices, but it means that bulls need to be VERY careful.
Previous analysis:
Think the curved blue line on the left is important. It's a subjective line, so where to put is not easy, but think the 11200/300 range is a good level. That thick blue line i have used past 2 months, might also still have some weight, but i don't see it being very powerful anymore. So when bulls can reach that line again, it might force some sideways action, but could easily break it upwards eventually.
So i think that when the 11300 breaks (as a first good step), the bulls are probably in favor again and that bullish price action for the coming weeks/months becomes more likely as well. 11.600 is also still a big level for the bull to break. The 12.000ish has been an important several times the past months, so i think its best to assume that zone will still have a lot of weight as well.
On the downside, that curved line on the left seems to be real, so looks like that when the 10600/550 breaks, we could drop towards the 10.000ish again. I mentioned week ago, that 9500 was a possible higher low formation and so far it has been the low. Which means, that bulls have to hold the 9800/9600 from now on. Think if that breaks, the 9500 won't hold and therefore it will become very likely to see 8K prices or even lower, as i mentioned in the previous analysis.
So, 10600 is a level now, 10400 might be a level as well. 10.000ish is a big level also and i think that as soon as the 9800ish starts to crack, that bulls need to be very careful. In theory it can drop to 9500 as well, but i assume the 9700 should already be the maximum. So when the 9700 breaks, doesn't mean i am going to fully bet on 8K prices, but it means that bulls need to be VERY careful.
Previous analysis:
Note
Curved line from the left (primary chart broke) and now we get to see what the market will decide coming days. Whether its another higher low test or that its simply going to drop again. Low time frame, seems 10300ish is a level now. The more important level is 10500/600 from now on. Anything below that, think bears are still in favor.
Think even in a bullish scenario, it should take like 1 to 3 days before we really bounce up again. So think we might be hanging in this zone (9800/10300 for a day or 2.
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