Possible Channel Break Re-tests
Updated
A quick look at how Bitcoin could drop as low as 25-26k or even 22-23 and remain bullish.
Bitcoin first broke above an inverted HS, which ultimately led to a parallel channel breakout on the weekly chart.
We haven't yet re-tested the top of that channel.
A re-test doesn't always occur, but if it does a re-test at 25-26k is easily still bullish and remains above both pattern breaks.
There's also the possibility of a pullback below the inverted HS that still remains above the channel if a re-test occurs but gets dragged out for weeks. A prolonged re-test could pullback below the inverted HS, yet remain above the parallel channel, going as low as 22-23k or even lower (below 20k) if it is prolonged further.
Bitcoin first broke above an inverted HS, which ultimately led to a parallel channel breakout on the weekly chart.
We haven't yet re-tested the top of that channel.
A re-test doesn't always occur, but if it does a re-test at 25-26k is easily still bullish and remains above both pattern breaks.
There's also the possibility of a pullback below the inverted HS that still remains above the channel if a re-test occurs but gets dragged out for weeks. A prolonged re-test could pullback below the inverted HS, yet remain above the parallel channel, going as low as 22-23k or even lower (below 20k) if it is prolonged further.
Trade active
First touch of channel top re-test was reached earlier this eveningTrade active
Weekly stopped at the first expected level, on the upper yellow line near channel top. Dashed white line around 24.5k give or take 0.3k is the neckline of an inverted HS. I suspect we at least reach that before heading back up, possibly the 2nd yellow line below that:Comment
NOTE - There is a possibility that we re-test the area around 27k before 24.5 as well, or even recent highs near 31-32Trade active
Approaching a re-test of channel top, as well as the weekly neckline of the inverted HS, below is a simple view of the same chart above; showing only those two things:Trade active
Still valid, have remained above the channel, and moved up on re-testing so farTrade active
Hit halfway mark on the way to TP 1:
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