** BTC is full Parabolic **
Well that should come as no surprise, BTC is on a parabolic course since the November low (even before the December bottom). The channel perfectly fits the last two touches on the lower trend-line but is now trading the longest (since the beginning of January) close to this . Since we are near the 10350 1W , that should ring an alert.
** The Channel Up **
For the more traditional ones, there is also a Channel Up (dashed lines) that is also supporting this uptrend, since the January 3rd touch. Every Higher Low on this Channel has been on the (roughly) symmetrical line from the previous Higher High (see the green bold lines). This is basically what is keeping the momentum alive, as traders sell on a High and then buy back (making a Higher Low) on the symmetrical line made by the previous High.
** The **
Among those patterns, here comes another, on the this time, which may reveal something important about the trend. We see a , which is practically close to exhaustion as the Highs are flat-lined around 70.000 - 71.000. This indicates that buying momentum is gradually running out of steam and a pull back may be in order.
Based on all the above, as long as Bitcoin doesn't break the 10350 1W Resistance, chances are to see first the Parabolic channel breaking and then the Channel Down to the downside. The zone between the two is displayed on the chart by the orange Triangle, and that is perhaps THE MOST IMPORTANT AREA for the short term. The price is neutral within it but bullish/ outside. If we do break below it indeed, the in my opinion the most likely level of retrace is the 0.500 Fibonacci at 8200. This is because it has also been both a Higher High and Higher Low on the Channel Up (see the green lines). A break above the Resistance though, sustains the gained by the parabolic and Channel Up patterns.
Do you agree with the above? Let me know in the comments section!
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