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.
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.