Another choppiness and another consolidation type of pattern on the bitcoin's price movement. Earlier this morning, we've seen a push toward the $10500 and right at the white resistance zone which is now becoming a strong resistance zone. During this consolidation phase, I'll show you 3 important things we need to be aware of in this chart.
1. White resistance trend line
At first time, I'll always start with the most crucial things on this current market structure. It's the white resistance trend line which has been broken out since the early October. I see this as an important trend line because since the break out event which I consider this as the first phase of my break out strategy, we haven't seen any sign of retesting this broken resistance as a support which is the phase 2. Based on my valuation, we can see a potential retest zone at the blue region if we consider the price action in the historical data. That's why at first deduction, I highly recommend you to save some of your fund to accumulate more at this zone which is around $10800 - $10500.
2. Assuming parallel channel
If we assume the parallel channel, we can find an important and valuable uptrend channel here. It shows us the representation of the bulls which is now gaining any strength. We see a rejection point right at the upper line of this parallel channel and we see the rejection point toward the support at the median line of the channel which is becoming the support trend line for now. What makes this parallel channel more important is that if the price can breaks below this median line, we can see further push toward the lower line of this channel which is moving in alignment with the blue region which I've covered on the first point.
3. Green dotted line
This green dotted line is also crucial as it was a broken horizontal line after the long consolidation from August - September 2020. After a break down, we see the first retest at September 19th and it also got rejected. But, at the 2nd test toward this resistance, the price is able to break this horizontal line. However, at current condition, the price is still trending above this horizontal support which we can consider this as the crucial point too.
1. White resistance trend line
At first time, I'll always start with the most crucial things on this current market structure. It's the white resistance trend line which has been broken out since the early October. I see this as an important trend line because since the break out event which I consider this as the first phase of my break out strategy, we haven't seen any sign of retesting this broken resistance as a support which is the phase 2. Based on my valuation, we can see a potential retest zone at the blue region if we consider the price action in the historical data. That's why at first deduction, I highly recommend you to save some of your fund to accumulate more at this zone which is around $10800 - $10500.
2. Assuming parallel channel
If we assume the parallel channel, we can find an important and valuable uptrend channel here. It shows us the representation of the bulls which is now gaining any strength. We see a rejection point right at the upper line of this parallel channel and we see the rejection point toward the support at the median line of the channel which is becoming the support trend line for now. What makes this parallel channel more important is that if the price can breaks below this median line, we can see further push toward the lower line of this channel which is moving in alignment with the blue region which I've covered on the first point.
3. Green dotted line
This green dotted line is also crucial as it was a broken horizontal line after the long consolidation from August - September 2020. After a break down, we see the first retest at September 19th and it also got rejected. But, at the 2nd test toward this resistance, the price is able to break this horizontal line. However, at current condition, the price is still trending above this horizontal support which we can consider this as the crucial point too.
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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.
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.