Bitcoin seems to have broken the regular pattern of the channel we have been forming since early spring in April/May. It seems to have found support in the $6100 area, making a potential double or even triple bottom on the pink line.
After we tapped '1' we should have gone to '?'; but instead we held and made a double bottom at '2'. T
hen we broke the pattern by tapping the upper trendline twice in a row at '3'.
Price was resisted at the upper trend line and came back down just now to $6100 support now making a triple bottom (quadruple if you count both shoulders of the H&S) @ $6100
at '4'.
Now the question is; will we go back and validate the old pattern by going to '5' around $5200; or try to break the falling wedge/channel and tap the upper trendline a third time @ $7200.
If $7200 breaks and price can break out of the channel then we explode.
If we go down to $5200 a large amount of miners other than those with the lowest rates will begin to become unprofitable if they weren't already and could see miner capitulation more than we already have. There is also the argument that some miners shutting down could provide support by choosing to use the fiat that was normally allotted to mining and the energy bill to purchase more crypto than they would be able to mine directly.
After we tapped '1' we should have gone to '?'; but instead we held and made a double bottom at '2'. T
hen we broke the pattern by tapping the upper trendline twice in a row at '3'.
Price was resisted at the upper trend line and came back down just now to $6100 support now making a triple bottom (quadruple if you count both shoulders of the H&S) @ $6100
at '4'.
Now the question is; will we go back and validate the old pattern by going to '5' around $5200; or try to break the falling wedge/channel and tap the upper trendline a third time @ $7200.
If $7200 breaks and price can break out of the channel then we explode.
If we go down to $5200 a large amount of miners other than those with the lowest rates will begin to become unprofitable if they weren't already and could see miner capitulation more than we already have. There is also the argument that some miners shutting down could provide support by choosing to use the fiat that was normally allotted to mining and the energy bill to purchase more crypto than they would be able to mine directly.