BTC/USD – 8 years CHANNEL UPDATE for BITSTAMP:BTCUSD by TheArtOfCharting

🤝Let’s learn and grow together 🤝

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Hello Traders ✌

I’m sorry to be always cautious and often at the opposite side of the major claims but, as I said tons of times, that’s what charting is telling me up to date.

After last two bull weeks, I’m listening and reading many statements that basically sounds like: “BitCoin to the moon”, “It’s over” and so on.

Every opinion should be respected and so I do. I’m not saying it cannot be like, I’m ready to change my view everyday but, at the moment, the chart is telling me a different story.

I have already analyzed the macro BitCoin scenario on July 2022 (see linked ideas) and so now I’m now going to focus only on the last 8 months.

As far as I can see, the only point in favor of a price recovery is the last week strong move above the 200 Days EMA . Breaching the 200 Days EMA is a good sign but stabilize above it is totally another matter, especially after a long down move like this one.

What I think is that we cannot say anything about BitCoin (not even short term) till the key area ( orange circle) doesn’t reveal its intentions.

First of all, price have not breached the bearish trendline yet, which is usually one of the first and basic signs of a possible consolidation or reversal area.

Second, just above price, we have quite strong minor high (L) at a round level of 25k , a subsequent lower boundary of the seven years channel (violet line) and a strong previous level at round-psycho price of 30k (which was also the breakout line of the Double Top “I”).

To me, these are all sign of a huge resistance area which could bounce price back and resume the down trend or, at least, keep on building a congestion area.

Again, I’m not certainly saying that this is what is going to happen but I would be at least very cautious in what I say.

Lastly, the yellow dashed line delineates a possible Head & Shoulders Bottom but, at this point, this is pure fantasy or at least a simple conjecture.

🔎🔎🔎 ALWAYS REMEMBER

“A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist”

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⚠ DISCLAIMER ⚠

The content is The Art Of Charting’s personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.

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