BTC is backing down from what appears to be a strong rise bouncing off the 29k level. From here there are likely two main scenarios we must consider going forward. This is going to be a mutual post, neither long nor short. Only going to indicated what I see as the levels that BTC is likely to react from.
Watching these levels will likely tell you the direction BTC will be going short/mid term judging by how the reaction is. The scenarios are as follows.
Scenario #1: BTC bounces off or near the blue line and squeezes to test the resistance at the top of the channel. If a successful break of the channel next stop will be the 200MA around 45k where it will meet very heavy resistance. This would be the main reaction to watch.
Scenario #2: BTC tests the blue line but breaks below it. This would indicate further downward pressure to follow and it would likely take it all the way to 30-32k before finding ground. Then we would see some bouncing around as we have since May. More sideways movement would follow down the channel.
Watching these levels will likely tell you the direction BTC will be going short/mid term judging by how the reaction is. The scenarios are as follows.
Scenario #1: BTC bounces off or near the blue line and squeezes to test the resistance at the top of the channel. If a successful break of the channel next stop will be the 200MA around 45k where it will meet very heavy resistance. This would be the main reaction to watch.
Scenario #2: BTC tests the blue line but breaks below it. This would indicate further downward pressure to follow and it would likely take it all the way to 30-32k before finding ground. Then we would see some bouncing around as we have since May. More sideways movement would follow down the channel.