Bitcoin making a bull flag against the resistance zone
So objectively this says chances up are bigger, because of the on the left. Just the that worries me a bit, saying that distribution is also an option the past days (meaning whales are shorting/selling here). That channel on the right seems to be legit, so think as long as that one doesn't break on the downside, no reason to think it will drop .
Another option to think of is, if it is distribution and we do break up, could be a fake stop hunt move. But that's usually when we see a quick short squeeze and low . So see that as a small warning in case we see a move like that.
11500ish is a resistance, 11200ish a support and a break of 11.000 will prob cause a retest of the 10600 and maybe lower even. On the upside, we have 12500 as a big one and 13000ish as maybe the key level for continuing the bull trend or the consolidation. If some things don't make sense, because i explained it past days in my channel.
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"The parabolic shape broke, so the short term potential panic is gone now. Now both directions are open again. 12.000 seems to be THE level now for the bulls to shake off the potential distribution"
For now, bigger picture, a drop to low 11K is still a realistic play and would even be better for the mid-term. Making a decent consolidation and making something that looks like a big inverse H&S. I won't repeat what i think of these H&S, but it's more the idea of it.
Short term, we can see the resistances in the middle. The challenges for the bulls on the short term.
The channel on the left is something to watch as well, it looks real with several touches. At the moment, we are still in the lower high zone, so unless the high breaks (think 12.000ish is enough already), the danger remains for the channel to break down. If we do break up, we can see where the resistance of the channel will be next.
If the 11850ish breaks, than it's prob just another bounce up from that trend line. So think important next hour or so
Anyway, the triangle broke down, even though it's an ascending (so usually bullish). That's the main reason why i always say, it can go both ways. Seen it too many times going the other way, so for me it's always 50/50, unless i get other signs.
Problem now is, that trend line broke. I see 2 options for this:
1) This is just a drop to make a big correction/consolidation. If that is true, we could see that big bull flag play out on the left.
2) We move up a bit, but won't get above the 11800ish anymore, making the move up only a retest of former support and we make another wave down.
Actually a third option is, we get to see that right shoulder form around 11100/400, as i showed in a previous update. IMO also still a very likely option.
So for now, a key level is 11800ish on the upside. Downside is not so easy, because we have several support levels now. But the first one seems to be 10550
As mentioned earlier, below 11k, 10.600ish is the next support.
FWIW... last night I suddenly had another MONS (middle-of-the-night-thought)
Bitcoin vs. Gold - which will perform better?
(click on the chart to see the idea)