BTC has followed a parabolic envelope (made up of parabolic resistance and support lines) since 2014. After announcements from CME and CBOE in mid-late November that futures trading would be launched on their respective platforms, BTC broke the parabolic resistance 26th November. This, amid anticipation of institutional investment entering the crypto-space and driving prices up. Its bull trend was supported by a linear support line (and the subsequent bullish market sentiment helped altcoins achieve astronomical new highs). The widely expected correction followed 17th December and the bear trend is now respecting a resistance trend. Could it be that BTC will fall back into its previous parabolic envelope? Only time will tell - the most recent low during this correction phase was higher than the previous low, which may be the first indication that the correction phase is over.
If the bear trend persists, the first support line is found at the support line of the parabolic envelope. The next support is found at the linear trend line.
If the bear trend persists, the first support line is found at the support line of the parabolic envelope. The next support is found at the linear trend line.