BITCOIN Will this Channel hold? And what if it doesn't?

The current decline has put second thoughts on many Bitcoin buyers and rightly so. As with the November 25/26 decline, the price broke below the 4H MA50 (blue trend-line), which has supported since Nov 29. Also as with the November decline, it also touched the Higher Low trend-line of the Channel Up.


** The Channel Up **
However this time by hitting the Higher Low line, it also (almost) made contact with the 4H MA200 (orange trend-line). That was the first time since October 08 that contact is made with the 4H MA200. Technically, with the Channel Up being very consistent since November 05 with its High, Low and middle trend-lines, we should consider this as a very strong Support for BTC and a potential rebound point. The next Higher High is placed just above $21000.


** The Inverted Head & Shoulders **
But what if the Channel Up and 4H MA200 doesn't hold? Well the decline since the November 30 top, appears to be symmetrical (so far) with the Nov 05 - 25 rise. That being a mirror image/ the inverse sequence. Those tho sequences (Channels technically) could be the Left and Right Shoulder respectively of an Inverted Head & Shoulders (IH&S) pattern. With the Nov 26/27 being the Head. So assuming the Channel Up breaks, the Right Shoulder of the IH&S can take BTCUSD as low as the $16200 - 16000 region. With the RSI (on the 4H chart) being on a Channel Down (bearish divergence) since November 05 (matching exactly the Channel Up of the price action), this is certainly possible.


What do you think? Will today's low hold, make a Higher Low on the 4H MA200 and start a new strong rebound? Or we'll re-test the low 16000s? Feel free to share your work and let me know in the comments section!



Please like, subscribe and share your ideas and charts with the community!

--------------------------------------------------------------------------------------------------------

!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!

🎉 👍 Shout-out to TradingShot's 💰 top TradingView Coin donor 💰 this week ==> superkitty

--------------------------------------------------------------------------------------------------------