Observation
After 58 weeks of price rising within a well-defined channel, Bitcoin has hit the top of that channel, while tracing out an almost perfect Cup formation. Considering the sustained over-bought conditions of the weekly RSI and a MACD that is rolling over, it seems that BTC is ready to correct and build a Handle to complete the Cup formation.
Correction Target
With unconfirmed support at around $30.5k, coinciding with a 50% retracement of the move from $15.4k, and the 1W 200MA, it would seem a minimum correction to around $30.5k is in order. Below that we see the 61.8% ($27.0K) Fibonacci level coinciding with the bottom of the rising channel, with strong support demonstrated around $25.2k. So, it would seem like a safe bet for a target in the price range from $30.5k to $25.5k over the next 6 weeks or so.
Other considerations
After 58 weeks of price rising within a well-defined channel, Bitcoin has hit the top of that channel, while tracing out an almost perfect Cup formation. Considering the sustained over-bought conditions of the weekly RSI and a MACD that is rolling over, it seems that BTC is ready to correct and build a Handle to complete the Cup formation.
Correction Target
With unconfirmed support at around $30.5k, coinciding with a 50% retracement of the move from $15.4k, and the 1W 200MA, it would seem a minimum correction to around $30.5k is in order. Below that we see the 61.8% ($27.0K) Fibonacci level coinciding with the bottom of the rising channel, with strong support demonstrated around $25.2k. So, it would seem like a safe bet for a target in the price range from $30.5k to $25.5k over the next 6 weeks or so.
Other considerations
- Other lines of convergence – Just above the 78.6% Fibonacci retracement level is where two lines of support (black dashed) converge with the 1W 300MA at around $23k.
- Unconfirmed Support – below all else is an level of unconfirmed support at $18.4k where price was rejected on Dec 12, 2022. Bitcoin does not typically leave these levels untested, so in the case of some geopolitical black swan event, this level could come into play.
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