The orange lines are the trendlines of the previous expansion. In the 2017 bubble this trendline marked the maximum expansion of the bitcoin price.
This time the expansion surpassed the trendline but also quickly retraced under it. During this time the trend line both acted as support and resistance . Since we are under it now we can expect it to operate as resistance.
The green lines are 3 major support zones. In the beginning of the year we had a breakdown of the 5600 support, but this time the weekly 200MA is close to crossing it, resulting in a major support zone .
Another reason 5600 might hold is because 3000USD/BTC was an overreaction to the downside, 14000USD/BTC was an overreaction to the upside, and now we're looking for a price level to stabilize.
In conclusion, we can expect the 5600 zone to provide major support and possibly provide a bottom.
This time the expansion surpassed the trendline but also quickly retraced under it. During this time the trend line both acted as support and resistance . Since we are under it now we can expect it to operate as resistance.
The green lines are 3 major support zones. In the beginning of the year we had a breakdown of the 5600 support, but this time the weekly 200MA is close to crossing it, resulting in a major support zone .
Another reason 5600 might hold is because 3000USD/BTC was an overreaction to the downside, 14000USD/BTC was an overreaction to the upside, and now we're looking for a price level to stabilize.
In conclusion, we can expect the 5600 zone to provide major support and possibly provide a bottom.