The bottom trend line
larger trend (bottom light blue line) has been broken on January 16th. It appears it has been support switched to resistance as it was retested January 18th. I am currently watching this "bear flag" channel (yellow lines) to see what BTC
will do next. A break above the light blue line (around 12k where flag currently is) with some volume
would be a short-term bullish
signal. Another rejection of that resistance and a break through the bottom of the yellow trend channel would be bearish
. With how I have drawn the channel there is only about 12 hours left for a decision to be made for this formation. My guess is a retest of the 11.8-12k area and a fallout of the bottom of the trend channel.
There is a head and shoulders
that has occurred and we are retesting the neckline (as I posted in a previous chart). If the bearish wedge
breaks, the green box is the projected target for the wedge
. I, however will have buys set up around 9500, 8800, 8200, and ultimately the 7500 area.
I am personally looking to buy another dip, it seems likely we at least reach the white horizontal support line where a double bottom
could be created around the 9500 area. Below that would be around 8.3k and 7.5k levels of support.
Whichever way this goes, even if down (like I believe) short-term, I assume by the summer this will all just be noise in the overall extremely bullish trend
. Monthly, weekly and 3D charts still are healthy and a continued correction would not be the end of the world for the long-term bullish trend
Thanks for reading!