Hello, traders!
Since the price of Bitcoin drop to $30K the trading range was formed from $30K to $42K. The price action inside this range contains 3 phases.
1. The blue trendline resistance 1 breakout was the end of downtrend and the price entered the sideways market.
2. The price found multiple resistance on the orange trendline resistance 2.
3. The price started to form the upward trend channel making higher highs and higher lows.
Which scenarios can we anticipate in the future?
1.If this is the end of the accumulation phase, the price should form some sign of strength before the global resistance breakout. For example, it can follow the green scenario and find support at the lower band of the trend channel, after that continue to move in the upward direction. This is the most bullish scenario.
2.The blue path is the another possible scenario. The price can break down the channel but find support above the trendline support.
3.The most bearish scenario is the red path. This scenario means at least the sideways continuation, and the breakdown below 30K is also possible.
To sum up, we should pay attention now to three lines: the lower band of the channel, the trendline support and the trendline resistance 2 because the breakdown of each line changes the possible scenario. At the same time, the most important resistance line is the $42K, we can talk about some bull market continuation only after it's breakout.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Since the price of Bitcoin drop to $30K the trading range was formed from $30K to $42K. The price action inside this range contains 3 phases.
1. The blue trendline resistance 1 breakout was the end of downtrend and the price entered the sideways market.
2. The price found multiple resistance on the orange trendline resistance 2.
3. The price started to form the upward trend channel making higher highs and higher lows.
Which scenarios can we anticipate in the future?
1.If this is the end of the accumulation phase, the price should form some sign of strength before the global resistance breakout. For example, it can follow the green scenario and find support at the lower band of the trend channel, after that continue to move in the upward direction. This is the most bullish scenario.
2.The blue path is the another possible scenario. The price can break down the channel but find support above the trendline support.
3.The most bearish scenario is the red path. This scenario means at least the sideways continuation, and the breakdown below 30K is also possible.
To sum up, we should pay attention now to three lines: the lower band of the channel, the trendline support and the trendline resistance 2 because the breakdown of each line changes the possible scenario. At the same time, the most important resistance line is the $42K, we can talk about some bull market continuation only after it's breakout.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
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