Bitcoin Parallel Channel
Updated
My first tought off a Bullflag a couple days ago didn't played out as expected, so i took a closer look with the new data available.
Lookin at it now we can see bitcoin is inside a parallel channel and respecting the heartline of the channel almost perfectly.
The failed break out on Feb 9 should be disregarded since it was caused by the Tesla Bitcoin News.
I would love to see bitcoin trading inside that channel and not breakin it to the upside, since this would lead to very overbought conditions and the danger of a blow off top could become very real.
If bitcoin closes above the last weeks candle close at 47680 it most likely will make a new ATH and break above 50k and test the top of the channel.
If bitcoin cant close above 47680 in the next days, bearish divergence on the 2d and 3d could develop on the MACD and RSI wich would most likely lead to a severe sell off afterwards.
However the demand for Bitcoin by big Institutions and retail is very big, thats why i think the sell off is gonna be bought back up almost instantly, like we seen today or in the last couple months.
It would present a perfect opportunity for those who would love to buy back in at lower price or add to their positions.
Lets see how this will play out :)
Lookin at it now we can see bitcoin is inside a parallel channel and respecting the heartline of the channel almost perfectly.
The failed break out on Feb 9 should be disregarded since it was caused by the Tesla Bitcoin News.
I would love to see bitcoin trading inside that channel and not breakin it to the upside, since this would lead to very overbought conditions and the danger of a blow off top could become very real.
If bitcoin closes above the last weeks candle close at 47680 it most likely will make a new ATH and break above 50k and test the top of the channel.
If bitcoin cant close above 47680 in the next days, bearish divergence on the 2d and 3d could develop on the MACD and RSI wich would most likely lead to a severe sell off afterwards.
However the demand for Bitcoin by big Institutions and retail is very big, thats why i think the sell off is gonna be bought back up almost instantly, like we seen today or in the last couple months.
It would present a perfect opportunity for those who would love to buy back in at lower price or add to their positions.
Lets see how this will play out :)
Note
Also we have a downsloping trendline on the RSI like we had in January. If this Trendline gets broken to the upside we most likely will see a new ATH.
Related publications
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.