BTC – Weekly Perspective – 05/19 to 05/26Does BTC really intend to break the previously theorized C&H corrective pattern?
The downtrend line outlined in previous analyzes were being respected. However, I noticed that in recent days prices managed to escape this limbo. Interesting, isn't it?
If the downtrend line breakout is true, a likely destination for prices would be the 85K region, an “upside” of more than 25% if we compare it to the cryptocurrency’s current price (66.7K). But for this to happen, prices must first overcome and remain above 68.5K.
Now, if prices do not remain above this level (68.5K), I, personally, will consider this attempt to take power by the bulls as a beautiful buying “trap”. Therefore, whoever enters above this price range (68.5K) must have a well-adjusted STOP LOSS.
Let's go to the graph
In the long-term bias, the SETUP used still indicates fatigue on the part of prices, therefore, it remains inclined to want to reverse the predominant upward trend, a clear sign of a struggle between buyers and sellers.
See the image below. Prices must necessarily stay above 66.5K on the monthly chart, if they want to maintain their strong upward trend and discard once and for all the pattern that I have been theorizing for some time (C&H).
The red lines are support points.
On the weekly chart, we already have a divergence, as prices are trying to leave the LTB’s traced for good.
From the SETUP used, it appears that long-term buyers (those who entered in January) are making purchases, and this demonstrates why prices are not strong enough to break the 68.5K region (resistance), as these buyers They are maintaining defenses, trying to attract new entrants! See the image below.
The red lines are resistance points.
Coming to the short term, once again SETUP points out that long-term buyers (January 2024) are maintaining prices to attract new entrants and, thus, reach new records (85K).
We even had an upward pivot during this time, which managed to reach the “golden” region, as shown in the image below.
The red lines are resistance points.
Do your analysis and good business.
Be aware, if you buy, use stop loss.
See other graphical analyzes below.
