BTC has arrived once again at the bottom range of the long term channel. The range is tightening up and it looks like we are due for an even more explosive move soon...
Pros -
-potential inverted h&s building
-halving approaching
-global markets crashing can become a positive for BTC even though that correlation is initially not fairing so well
-rock solid resistance on long term trendline
Cons -
-just broke from a h&s which took us to the bottom of the trendline
-strong correlation with traditional markets which are crashing
-huge rising wedge since 2017 peak
-china is hit hardest by coronavirus outbreak yet controls highest stake of BTC mining - recipe for disaster?
-ETH/BTC pair (once considered an alt-season indicator) had a similar setup in late 2018 and ended up breaking below the long term support and has not recovered to this day
IF break below the trendline, I will likely close all positions and give it some time to get back into the channel.
ELSE continue to hold and add to position depending on how BTC responds to major support/resistance points.
Overall, unfortunately I find myself on the bearish side of the argument.
Pros -
-potential inverted h&s building
-halving approaching
-global markets crashing can become a positive for BTC even though that correlation is initially not fairing so well
-rock solid resistance on long term trendline
Cons -
-just broke from a h&s which took us to the bottom of the trendline
-strong correlation with traditional markets which are crashing
-huge rising wedge since 2017 peak
-china is hit hardest by coronavirus outbreak yet controls highest stake of BTC mining - recipe for disaster?
-ETH/BTC pair (once considered an alt-season indicator) had a similar setup in late 2018 and ended up breaking below the long term support and has not recovered to this day
IF break below the trendline, I will likely close all positions and give it some time to get back into the channel.
ELSE continue to hold and add to position depending on how BTC responds to major support/resistance points.
Overall, unfortunately I find myself on the bearish side of the argument.
Note
WOW! -25% in one day!!! I am a buyer at these levels, I see blood. Added to position at ~$5900. Hope I don't catch a falling knife.Note
For those waiting for another severe drop - this chart makes me hesitant to think we will revisit lows. Look at the symmetry, the way we reclaimed the channel.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.