BTC has developed a repeating fractal as show by the two sets of green arches on the chart. We are still moving within a bullish flag, and considering the last time we had a prolonged consolidation period was at $6k this multi week correction is well needed.
The green box shows short term support on 4 hour candles. The yellow box is a likely reversal zone as it is the bottom of our bullish flag, we have a major support line at 8k, and 200 day MA slightly above.
Fundamentally, much of the Asian market is observing the Chinese new year mid February, and that means more or less the entire month will be low volume. I don't expect a bullish break from this flag until March so it will be interesting to see how long we stay in the sub $10K region assuming we do hit the 200 day moving average which will be a very strong support.
For those of us who have been patient, bravo.
The green box shows short term support on 4 hour candles. The yellow box is a likely reversal zone as it is the bottom of our bullish flag, we have a major support line at 8k, and 200 day MA slightly above.
Fundamentally, much of the Asian market is observing the Chinese new year mid February, and that means more or less the entire month will be low volume. I don't expect a bullish break from this flag until March so it will be interesting to see how long we stay in the sub $10K region assuming we do hit the 200 day moving average which will be a very strong support.
For those of us who have been patient, bravo.