Bitcoin: Are the buyers about to regain full control?Bitcoin recently took out its 62,000$ Resistance creating a new all time high, and right now from a Technical Analysis standpoint we are coming to a crucial point. On the Chart, even the price has already broken out two times downwards from this Upwards Sloped Channel, I think it is still quite important.
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Parallel Channels
Parallel Channels are quite common in Cryptocurrency aswell as other financial markets. In this pattern the price moves upwards or downwards zig zagging between a slopped parallel channel. This signifies a battle between the buyers and sellers until eventually we see a breakout above or below the "trendlines" which are the lines formed when the price makes 2 obvious "swings" or touches on each side of the pattern, forming the sloped structure.
When price finally "breaks out" of the structure, below or above; we can see a continuation in that said direction, unless the price quickly moves back inside the pattern, in which then traders who were looking to capitalize on the breakout are quickly taken out of their trade as the price reverses the other direction inside the pattern again, a successfull breakout is usually marked with a retest, which is a confirmation of the change of trend after breakout of the pattern.
Parallel Channels are made up of these key characteristics:
-Minimum 2 Touches on Each Side with obvious swing points
-Should form Straight Edges
-Upwards sloping channel shows a Bullish Trend until broken
-Downwards sloping channel shows a Bearish Trend until broken
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Market Trend
The dictionary definition of trend: a general development or change in a situation or in the way that people are behaving.
In financial markets the direction the price of a asset is moving is referred to as the trend.
Markets are made up of several different kinds of trends, and it is the recognition of these trends that will largely determine the success or failure of your long and short-term investing.
There are 3 key trends in a Markets:
1. Bullish (upwards, buyers in control) (higher lows, higher highs (HL, HH)
The Mark Up phase is an uptrend or bullish trend.
2. Bearish (downwards, sellers in control) (lower highs, lower lows (LH, LL)
The Mark Down phase is an downtrend or bearish trend.
3. Consolidation /Sideways (sideways, direction & control undecided temporarily)
Re accumulation & Re distrubution phases are consolidation phases or "pauses" in the market before continuation of trend.
This upwards slanting Parallel Channel is a great example of a Bullish Market Trend, in a Bull Market the characteristics of the trend usually show obvious Higher Lows and Higher Highs consecutively, showing us that Bitcoin is still in a strong upwards trend as long as we keep printing the HL, HH (Higher Lows & Higher Highs).
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Conclusion
To put it simply, if the price can Find Support (Stay Above and Bounce Off) the 61200-61900 area we may see the price confirm that it is back inside the upwards sloped channel, if this occurs many buyers may flock in for a speculated push to the $70,000-$80,000 region or higher, if we were to lose this area though Bitcoins fast paced upwards movement may be cut short as the Upwards Channel breaks down.
Thank You, I hope you found the analysis informative, feel free to leave your comments.
