When looking at the 4 hour chart I can only see 1 thing and that's; the moment of truth.
Bitcoin will either resume it's downtrend or it will break out of this channel to challenge the 12.5k .
As you can see btc formed a head and shoulder pattern which has almost reached it target. If btc reaches that point it starts to become really critial because the target of that pattern is a major .
If bitcoin breaks below that major then i'll close almost all my long positions.
Obviously we wouldn't prefer that because it kills a lot of momentum regarding the whole crypto market so we would like to see 1 of these 2 options.
1. Bitcoin finds support on the red 100 line and starts to trade a little bit sideways before breaking out of the black trend channel.
2. Bitcoin reaches the target of the head and shoulder pattern but finds great support and starts trading sideways before breaking out of that black trend channel.
If we go below that purple support line the next support levels will be challenged next:
The more targets btc manages to reach the more the outlook.
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This is NOT advice. This is for information purposes only so trade on your own risk.
As you can see btc is heading towards the target i've set. This pullback was to be expected and i'm not worrying, yet.
I will start to worry when btc breaks the purple resistance area! I'll keep you guys updated.