What is the next move?

It is a hard thing to foresee what BTC will do but thanks to technical analysis we can guess the probable outcomes when a pattern occurs and take positions afterwards. As you can see there are 3 possible scenarios to watch out and each of them have their own targets. At the moment BTC bounced from the long term resistance line once and it is still consolidating very close to it. If it becomes successful to breakout this line and close a candle above it, we can start to think about a new great bull run but it needs to break out the neckline to confirm the Cup&Handle and Inverse Head&Shoulders patterns so trade cautiously and watch out for fakeouts just in case. On the other hand there might be a possible Inverse Cup&Handle pattern if it bounces back from the resistance line with a target of just below $7000 which is actually around our long term support. If this happens we might talk about a bull run forming from the long term support line however it is too early to talk about that.

To summarize, there are 3 possibilities and none of them has been confirmed so far. Watch for the drawn resistance line and possible patterns and trade cautiously.

Feel free to ask, criticise or comment about your own opinion, any feedback is appreciated.

*This is not a trading advice, it is just for educational purposes.*

Comment:

BTC was able to push through the resistance line but it couldn't sustain there and bounced back down. Patience is all we need.

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I am still not trading by the way, this can go both ways.

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It is going for another try after bouncing from EMA200, let's see if it can breakout this time.

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Finally Bitcoin broke through the resistance, now it should be targeting 11200 and then 11600. We will face another resistance up there and Inverse Head&Shoulders pattern will be completed if this scenario plays out.