Bitcoin is Struggling to Move Above the Channel Mid-Line

For the month of March, bitcoin has been carving out this upward sloping price channel.

The recent price action for bitcoin suggests a retest of the support trend line is coming. How prices behave from this support trend line will say a lot about the digital asset.

• Prices meaningfully bounce at support (green arrow) - under this scenario, bitcoin likely makes a run higher to the channel midline
  
• Prices thud at support, then correct further (red arrow) - if this situation unfolds, then we'll likely see a correction back to $49,400 and possibly lower
  
• Price carve an Elliott wave triangle pattern -
  

If the Elliott wave triangle scenario plays out, bitcoin will grind sideways between $54,000 and $60,000 for a couple more waves. Once the (e) leg is complete, that would finish wave ((iv)) and lead to a wave ((v)) higher.

It is hard to say which of these scenarios play out right now. The recent rejection at the mid-line suggests more corrective behavior to the channel support line is likely to unfold.

Best of luck trading!

Comment:

Price channel support simply could not hold up Bitcoin. This eliminates scenario #1 leaving #2 and #3 still possible.

For the Elliott wave triangle scenario to play out, we will need to see a rally from above $53,221 that is feeble and holds below $60k.

Below $53,221 we have a larger corrective pattern at play that opens the door to $49,400.

Good luck!