BITCOIN - One Channel, Two Breakout Scenarios!

Hello Community,

the year of 2023 is coming to an end and before the year is ending I spotted major signs in Bitcoin that will build the cornerstones for the Bitcoin price action development moving forward into 2023. These signs are what I am going to discuss in this analysis. If you already watched my previous ideas you already saw that there are massive bullish indications on the more middle and long-term perspective with Bitcoin having the potential to show up with a huge rally moving into the weeks and months of 2023. Nevertheless, on the more shorter term perspectives there are still fluctuations and potentials of volatility developments into both directions till Bitcoin finally found the trend that will complete the paramount formation on the long term.

Therefore, as when looking at my chart we can watch there how Bitcoin is trading in this major parallel channel formation that is inclined to the upside with support within the lower boundary and resistance within the upper boundary. Now what is important here to notice is that Bitcoin has a stronger support within the lower boundary as it bounced there more often and the buying volume is also higher than the selling volume. This means that there is a solid potential given for Bitcoin to finally bounce above the primary desceding resistance line marked in red which will create the first bearish invalidation. When Bitcoin settles above this area there are further bullish potentials given otherwise when this does not happen and Bitcoin confirms the resistance this will result in the invalidation of the bullish scenario and completion of the whole channel as a bear-flag.

Taking these two scenarios into perspective the bullish scenario currently has a higher possibility given nevertheless this can change also again if Bitcoin should show up with more intense selling pressure. In any case, what is necessary here is to await the final confirmations with Bitcoin either breaking out the upper resistance or the lower support till further measurements can be made. Once the final confirmation has settled the percentage height of the channel formation can be used as a measurement to the final target zone of the breakout this will result in a target of $18,000 when the bullish breakout settles and a target of $14,000 when the bearish breakout settles.

In this manner, thank you everybody for watching, Let's move forward together.

The information provided is only educational and should not be used to take action in the markets.