BTC has work to do.
Price is now in a tangle of trendlines spanning multiple timeframes:
Long term trend is still up (thick yellow trendline).
Medium term trendline (Orange trendline) has been broken to the downside.
Short term trend (thin yellow trendline) is down.
Technically this is a pretty bearish scenario, but it's not all bad news. We have just recently had a big flush out of leveraged traders, note the large wick down on the 4th December. Price fell through the $48K demand level and was caught in the $42K demand zone (orange boxes). The bullish event here is that there were so many buy orders at these levels that price shot straight back up above the previous demand zone at $48K and has stayed above this level ever since. Three out of four days price has returned to test this zone and failed, only to rally back.
The war however is far from won. Price is currently trapped....(purple polygon).
- above demand zone at $48K
- but below orange downtrend line, and below yellow downtrend line.
- below $53k resistance line.
BTC must defend this $48K level for if it is lost we are going back down to test the $42K zone again, but this time it will also be the long term uptrend line as well. A break of this long term trendline will put us into a bear market.
It really is time for BTC to roll the sleeves up and get some serious work done here and start to conquer one resistance line at a time. Trading volume is very low and there is very little commitment in either direction at the moment. We need to see BTC price break above the $53-54K resistance before we can start feeling bullish again.
Price is now in a tangle of trendlines spanning multiple timeframes:
Long term trend is still up (thick yellow trendline).
Medium term trendline (Orange trendline) has been broken to the downside.
Short term trend (thin yellow trendline) is down.
Technically this is a pretty bearish scenario, but it's not all bad news. We have just recently had a big flush out of leveraged traders, note the large wick down on the 4th December. Price fell through the $48K demand level and was caught in the $42K demand zone (orange boxes). The bullish event here is that there were so many buy orders at these levels that price shot straight back up above the previous demand zone at $48K and has stayed above this level ever since. Three out of four days price has returned to test this zone and failed, only to rally back.
The war however is far from won. Price is currently trapped....(purple polygon).
- above demand zone at $48K
- but below orange downtrend line, and below yellow downtrend line.
- below $53k resistance line.
BTC must defend this $48K level for if it is lost we are going back down to test the $42K zone again, but this time it will also be the long term uptrend line as well. A break of this long term trendline will put us into a bear market.
It really is time for BTC to roll the sleeves up and get some serious work done here and start to conquer one resistance line at a time. Trading volume is very low and there is very little commitment in either direction at the moment. We need to see BTC price break above the $53-54K resistance before we can start feeling bullish again.
