Now that price is above the top of the , we want to see it stay above. If BTC can close this candle above the , it greatly increases the likelihood of a test of the 50 , which is currently near the $4390 mark.
On the , momentum is continuing to expand to the upside, as buyers enter the market. As I've mentioned in previous analyses, we are expanding off of the second , in a series of two, that have extended through the entire bear market. So, there is a clear exhaustion in sell-side momentum, which could lead to a significant relief rally, should BTC overtake important resistance levels, such as the 50 . If we see price rally above the 50 and hold it as support, I think there would be an extremely high chance that we will rally back into the "Major Overhead ," to actually test the 5775-6000 area, and potentially confirm it as resistance.
Regardless, it is important to remember that we are in a powerful bear market. Even if we rally to 6000, that would not change the overall structure of the bear market. Technically, if we run up and test the 6000 level as resistance, and fail there, BTC would just be printing another lower high on the chart. So, remember, the bear is strong, and will probably persist well into 2019.
As I write this, the breakout candle is pulling back toward the top of the channel. So, let's keep an eye on where today's candle closes. We know that we've at least pierced the top of the channel, weakening it as resistance. Based on this technical picture, I think a test of the 50 is very likely. From there, we will have to see how BTC responds to the 50 , to project the future direction of price.
Happy Holidays Everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
So in short, quick picking on my older brother.