BTC - This Parallel channel seems important - Ill explain below
The parallel channel shown on the graph has been around since Oct 2020.
Looking back we can see that the top of the parallel channel has acted as resistance and the bottom has acted as support
The TA rules for a parallel channel specify that movement out of the parallel channel is a multiple of the channel width .
This part is interesting because if this parallel channel is cloned the top of the channel becomes the ATH BTC reached at 67k
if this Parallel channel is cloned below then we get the following setup and the bottom of the channel is shown acting as resistance
Looking back we can see that the top of the parallel channel has acted as resistance and the bottom has acted as support
The TA rules for a parallel channel specify that movement out of the parallel channel is a multiple of the channel width .
This part is interesting because if this parallel channel is cloned the top of the channel becomes the ATH BTC reached at 67k
if this Parallel channel is cloned below then we get the following setup and the bottom of the channel is shown acting as resistance
Comment:
if the parallel channel is cloned again at the bottom of the chart then it shows that BTC has actually bounced off the mid-line of the channel and the mid-line of the channel acts as support.
Comment:
Currently BTC is sitting below the bottom of the last parallel channel which is acting as resistance
Comment:
My interpretation of this setup is that if BTC fails to move up its going to drop 19293 and if that fails to hold its going to move to the bottom of the parallel channel at 16k .
However ......
if instead BTC moves up then its going to move to the middle of the next parallel channel up which is at 28K
However ......
if instead BTC moves up then its going to move to the middle of the next parallel channel up which is at 28K