In my last post 10 days ago (linked) I was bearish after BTC had broken down at 31.5K out of the symmetrical triangle it was in, with possible downside to 23K. BTC did then drop to the bottom of the descending channel it was in to 28.5K, but strongbuying pressure then pushed it back up to the top of the orange triangle at 33.5K before it again fell back to 32K. We the had a big pump in price to 38K after Elon Musk changed his twitter profile to #BTC, but it was rejected at 38K the bottom of the previous Nov/Dec ascending channel before falling straight back down to 33.5K the mid-point of the descending channel it's been in for the last 4 weeks in Jan. Next came 6 days of tight prices oscillating between 32K and 33.5K, with the Forflies EMA 'snake" unusually flat and the Bollinger bands unusually tight at $32-33.5K as well both suggesting there was going to be a big breakout with momentum to either the upside or downside - with opinions divided on the direction.
BTC now appears to have now clearly broken out of the descending channel at 36K (blue arror), and it looks like the BTC bulls are getting the better of the bears for now! BTC should now run up to the bottom of that previous Nov/Dec ascending channel again at 39.5K which is a good LONG opportunity I think. I will take profits at 39.5K if that's what happens, because then there are two scenarios possible after that:
1. BTC falls back to ~ 38K before continuing it's bull run breaking though the bottom of that previous ascending channel at 40K to head towards new ATH's of 43K+, and I will go LONG again if it does break through 40K
2. BTC is rejected at the 39.5K level and falls to 38K and then continues to fall back to below the mid-point of the descending channel it's been in to ~ 33K, and I will go SHORT if it drops below 37K on the way to doing that.
So that's my assessment of what's likely the next 3-4 days and my plan to trade it and the key BTC price levels to be watching! Comments and alternative views are welcome.
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Bitcoin has now dropped and retested the upper level of the descending channel at $35,750 and bounced up nicely to $36,250! Looks like it's the bulls now in control ready to take it up to 39.5K, which looks like a nice LONG opportunity to profit from!