DSchutz

BTC - Watch The Yellow Box

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Legend:
STS: Short Term Support
LTS: Long Term Support
There are multiple levels of support and resistance that are labeled using the above terminology, and they are differentiated simply using numbers (e.g., STS-1, STS-2, etc.)

The culmination of the following structures, and there converging paths, may prove significant:
--Bull flag (blue parallel channel ), considering the run BTC made from April to July/May to July/June to July, all three periods offer a basis for what could be a flag pole (extended upward trajectory), while the price action from July to current is the parallel channel that is the bull flag that forms as a counter trend to the angular trajectory of the flag pole.
--There is an upward sloping level of support (STS-1) that cuts through the bull flag . If we extend the top channel of the bull flag along with STS-1, we see that they eventually meet, forming an apex for a big move
--Support near 10,000 has proven significant
--Resistance between 12,000 and 14,000 has proven significant

Given the proximity and trajectory of these structures, I believe that price action near the yellow box will prove critical regarding BTC’s next big move. Two likely outcomes (and of course, an immeasurable number of potential outcomes):
1. Support at 10k holds, while price action creeps up STS-1, breaks out of the bull flag and the triangle to the upside, pushing into the resistance zone , and trading bullish short term
2. Support at 10k fails, resistance near 12k proves true, price breaks down below the triangle, while still trading inside the bull flag , but trading bearish short-term (potentially moving to test LTS-1 in short to intermediate term)

All of this is contingent on price action converging towards the apex of STS-1 and the top channel of the bull flag .

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