Last week, BTC flashed below the rising channel. This week, we start with a recovery and some relief.
RSI was down to it's lowest point from throughout this rising channel, so it is not surprising that we saw a bounce here. That being said, it is clear that the look of the pattern is changing. We are seeing falling volume and shallower highs on the impulse movements. By no means is this a bad thing (in fact, it's important for long term health of the rally); but it just isn't as 'easy' to read as it has previously been.
Obviously the 2 big things we are watching for are:
Failure to break a new high: The classic head and shoulders pattern. A failure to break new ground sets up a bearish movement.
Failure to remain in the channel: If we cannot keep in the channel, a shorter term channel may be required to find shallower profit opportunities.