Bitcoin Considates and forms a new upwards channel 10k by 5/20
Bitcoin has been moving rapidly up the blue channel. It is desperately in need of a pullback to reset the indicators and we have finally seen a dip from 9.9k to 9.1k atm which will continue to dip over the next 20 hours as we bounce off 9k. If we break 9k it will be brief but this chart may be invalidated and will put us in the orange channel. a Flashcrash could put us temporarily in the red channel but is very unlikely with where the moving averages are.
There is a very small chance of us continuing in the blue channel for much longer as the moving averages have already crossed it.
Probability of the movement of the moving averages puts us in the purple channel where we must first test a low, then test a high of the new channel.
Resistance will be at the formation of the orange channel and will slow us for a few days before we move upwards and out of this channel. There is also a chance we follow this channel until the end of may and reset indicators.
Above us at 11.7k is our double top which is slowly turning into an ascending triangle formation. If we continue in the purple channel we will break this formation by late July which will form new channels upwards.
here is a zoomed in section of what we are looking it. as I have been writing it has jumped back up to 9300 and is trying to reclaim the blue channel but again as the moving averages slowly break the channel it will fall.
To summarize- Probable outcome
Don't Panic- Bitcoin is going to 9k.
It is likely it will take at least a week before BTC moves back up to 10k.
Indicators need a rest and a downtrend will be necessary soon
Just in case
If purple channel fails. we will fall until late may in the orange channel and be rescued around 8200 on a new uptrend. as seen here
Be prepared if BTC does drop out of Orange channel within the next couple days ( around 8700) for us to go to 7400 and retest the ole downtrend death line again the ambulance will save us on the pink line above.
If this happens it will be a flash crash and buy situation.
Don't forget to like!
There is a very small chance of us continuing in the blue channel for much longer as the moving averages have already crossed it.
Probability of the movement of the moving averages puts us in the purple channel where we must first test a low, then test a high of the new channel.
Resistance will be at the formation of the orange channel and will slow us for a few days before we move upwards and out of this channel. There is also a chance we follow this channel until the end of may and reset indicators.
Above us at 11.7k is our double top which is slowly turning into an ascending triangle formation. If we continue in the purple channel we will break this formation by late July which will form new channels upwards.
here is a zoomed in section of what we are looking it. as I have been writing it has jumped back up to 9300 and is trying to reclaim the blue channel but again as the moving averages slowly break the channel it will fall.
To summarize- Probable outcome
Don't Panic- Bitcoin is going to 9k.
It is likely it will take at least a week before BTC moves back up to 10k.
Indicators need a rest and a downtrend will be necessary soon
Just in case
If purple channel fails. we will fall until late may in the orange channel and be rescued around 8200 on a new uptrend. as seen here
If this happens it will be a flash crash and buy situation.
Don't forget to like!
Comment:
UPDATE
Full bounce seems solid on the bottom of the blue channel line
1hour RSI loaded to move up to 9350ish and cross the red downtrend.
1hour RSI loaded to move up to 9350ish and cross the red downtrend.
Comment:
Bitcoin likes to play tricks!
It followed the red channel down and even fell out of the purple channel briefly to test the bottom of the orange before charging out of the red.
A retest of the top of the red is likely then a rally to 9600.
It followed the red channel down and even fell out of the purple channel briefly to test the bottom of the orange before charging out of the red.
A retest of the top of the red is likely then a rally to 9600.
4 hour RSI oversold and MACD reset.
Flash crash still possible but unlikely. We should bust out of red channel over next 24 hours.