Short-term sell off, longer-term gains coming
Looking at the popular 4h Chart on BTC, we see that we recently breached the thicker black trend line which has acted as support for the current BTC bullrun ever since the beginning of the year. Closing below this line would give further confirmation that BTC is likely to move lower. I would like to see BTC moving all the way down towards the lower bound of the 2 trend lines which are forming BTC's current price movement, as we had immense growth within the last couple of days. A quite realistic target would be within the range of 10100-10200. At that point, the RSI should reach the lowest major support/resistance line and we can expect some bigger support coming in at that level. Once we reached that target, I'd suggest to watch the market closely and wait for either a break down, or a bounce. In the latter case, BTC will continue ranging between the 2 trendlines and likely move in direction of the upper boundaries of the channel, realistic next stop around the 11100-11200 price range. In case BTC breaks below the supporting trendline, BTC is likely to make its way back below the 10k range and might even test again the bigger channel which acted as support after the last price drop 4 days ago.
Now, looking at the bigger picture, the Daily chart:
We see that BTC beautifully bounced off the lower boundary of the channel we are moving in at the moment and followed through with an impressive 2 day rally. The current consolidation around the mid-line of the channel was expected and recent declines in price should not be of great concern. I do believe that BTC will continue to make its way to the upper boundary of the channel around the 11600-11700 price range, despite the small drawback we are experiencing at the moment.
After that, we have to carefully watch and not be too hasty in anticipating a break out, as BTC has fooled many lately with brutal fake outs, both to the up-as well as to the downside.
Now, looking at the bigger picture, the Daily chart:
We see that BTC beautifully bounced off the lower boundary of the channel we are moving in at the moment and followed through with an impressive 2 day rally. The current consolidation around the mid-line of the channel was expected and recent declines in price should not be of great concern. I do believe that BTC will continue to make its way to the upper boundary of the channel around the 11600-11700 price range, despite the small drawback we are experiencing at the moment.
After that, we have to carefully watch and not be too hasty in anticipating a break out, as BTC has fooled many lately with brutal fake outs, both to the up-as well as to the downside.
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