The following analysis/idea identifies the three resistances that BTC phases in the immediate short term. In total, there are three resistances that we have identified, all of which have different levels of significance.
R1 - Resistance one is the structural resistance BTC has formed in its sideways. R1 is the least significant of the three resistances, as it is only resistance for the micro sideways trend that BTC has been forming since finding support at its most recent lows.
R2 - Resistance two is what we can look at if BTC breaks through R1. This downwards sloping trendline is significant as it has acted as resistance throughout the entire bear market.
R3 - Resistance three is the most significant resistance, as this zone acted as strong support in the bull market, and has now been flipped as resistance. If BTC is able to rally through R1+R2, I find it likely that the true battle will begin when interacting with R3 (previous support) as resistance again.
My Bias - My bias is that if R1 is broken that BTC will test the 30k range as resistance. Ultimately, I believe that BTC will fail that re-test, and work it's way down to my eventual target bottom at 12-14k. From there, a bull trend within the bear market would likely take place, before re-testing lows and then beginning the new bull market in 1-2 years from now. Of course, though, this is all just speculation, and the main point of this is to show you how I'm identifying and categorizing resistances in the immediate short term.
R1 - Resistance one is the structural resistance BTC has formed in its sideways. R1 is the least significant of the three resistances, as it is only resistance for the micro sideways trend that BTC has been forming since finding support at its most recent lows.
R2 - Resistance two is what we can look at if BTC breaks through R1. This downwards sloping trendline is significant as it has acted as resistance throughout the entire bear market.
R3 - Resistance three is the most significant resistance, as this zone acted as strong support in the bull market, and has now been flipped as resistance. If BTC is able to rally through R1+R2, I find it likely that the true battle will begin when interacting with R3 (previous support) as resistance again.
My Bias - My bias is that if R1 is broken that BTC will test the 30k range as resistance. Ultimately, I believe that BTC will fail that re-test, and work it's way down to my eventual target bottom at 12-14k. From there, a bull trend within the bear market would likely take place, before re-testing lows and then beginning the new bull market in 1-2 years from now. Of course, though, this is all just speculation, and the main point of this is to show you how I'm identifying and categorizing resistances in the immediate short term.