Bitcoin is now entering the consolidation zone after a huge upside gain since June 2020. We have some spike to the upside from around $9000 to decent $11000 region and this moves causing a huge confidence in the market in short term. Even though the price had its huge volatility which produced a wick toward the area of $10000 region, it's still too early to conclude that the price is now entering the reversal pattern to start the new correction wave. The only reason is that there is not any confirmation yet.
Although at current consolidation phase, the price has formed a Head and Shoulder pattern which usually will ends up bearish in the future but we haven't seen any breaches to breaks out of current white support trend line as the neck line of this pattern. Another confirmation that I'm looking at is at the RSI which it's still trending at the neutral zone which is between 40-60. This could be the shifting period from bullish structure to bearish structure but unless the RSI doesn't breaks down of the 40 level, the neutral bias is still valid.
The confirmation of short is when the price can breaks down from this white support trend line and targeting the $10000 as the golden pocket zone and a confluence area with the psychological level of previous broken resistance that is now become support. But breaking out above the $12000 will be very bullish for bitcoin and targeting the $14000 in the next run.
Although at current consolidation phase, the price has formed a Head and Shoulder pattern which usually will ends up bearish in the future but we haven't seen any breaches to breaks out of current white support trend line as the neck line of this pattern. Another confirmation that I'm looking at is at the RSI which it's still trending at the neutral zone which is between 40-60. This could be the shifting period from bullish structure to bearish structure but unless the RSI doesn't breaks down of the 40 level, the neutral bias is still valid.
The confirmation of short is when the price can breaks down from this white support trend line and targeting the $10000 as the golden pocket zone and a confluence area with the psychological level of previous broken resistance that is now become support. But breaking out above the $12000 will be very bullish for bitcoin and targeting the $14000 in the next run.
