Since our last breakdown of the chart, we have extended the purple long-term channel, and also added two black we see of importance. The black horizontal (roughly $11,000 BTC ) connects two different points of resistance we saw in 1) the orange cluster of resistance and 2) the lowest magenta high. Two weeks ago, we noted that although we had been short-term , the 4th low in black was not lower than the 3rd blue low and could be signaling accumulation in the ‘Oversold Territory’.
As BTC rallied back INTO the purple channel over the last week, we came upon the horizontal black line of resistance once again. This is when the Trump tariff news, as well as China devaluing their currency came out, in which BTC gapped higher. We observed that this gap higher went IMMEDIATELY to the downward sloping that connects the two major highs of $14,000 at the end of June and mid-$13,000’s high in July.
Early this morning we breached this downward sloping , but sold back off pretty quickly, represented by the teal curve. It will be very interesting to see if this momentum can propel BTC to the top end of the purple channel, which would price BTC back into the mid-$13,000’s. A continued rally would take BTC back to the highs made last month and certainly test any resistance that would likely form there.