tedwardd

BTC/USDT long target zone $51k-$60k

Long
tedwardd Updated   
BITSTAMP:BTCUSD   Bitcoin
BTC/USDT recently formed a head an inverse shoulders after a huge bounce off of the $30k support line which was last seen all the way back in January 2021. The inverse HaS pattern was confirmed yesterday with a close above the neckline and a retest on the 4H charts. This puts us nicely in an ascending channel with our retest happening right at the intersection of another major historical support line; the bottom of our sideways channel that dates back to when we first pushed up over 40k in February 2021. This channel extends from $40k up to the ATH at $65k.

What we want to see now is a breakout above the ascending channel to test the resistance zone of $44,7xx to $45,7xx. A break above this line will likely take us to the EQ of the horizontal channel, back down again to confirm the red resistance zone and back to the EQ. Once back to the EQ I would expect one of two things. Either we'll break through it and find our next resistance at the red descending macro trendline or we will be rejected and retest the top of the ascending channel, consolidating and [i[hopefully ending in a breakout above the EQ. Once above EQ and confirmed, we can start working our way up to the target. This target zone is rather large right now, extending between $51k and $60k. It all hinges on what happens when we hit the descending trendline. If we can break it and confirm, we'll likely head to the full target around $60k. If we are rejected, I expect a consolidation to occur between the EQ and the macro line, centered around $52k ending with, hopefully, a breakout above. In the past, we've seen this EQ line act as both very strong support as well as very strong resistance, holding for well over two months in the past. If we can get over it again and confirm it. I fully expect to see a new ATH again in the coming months.
Comment:
We were rejected at the EQ of the channel and break through the bottom of the channel on the re-test. This lead to the price dropping further to around $35,5xx which was the neckline for our previous inverse HaS. I suspect we will see a consolidation around this point over the weekend. I am hoping to see a re-test of this line in the next few hours leading to another attempt at breaking $37,600 but I suspect the more likely scenario will be a consolidation leading to a continuation of the drop we saw on the daily chart earlier this past week. I suspect we will then get another reactionary bounce and re-test to follow. Should $30k fail, the next likely support level isn't until at least $28k, and a weak support at that.

Here is my "hope-ium" chart for the next 24-48 hours: