BTC (short-term) descending channel with additional resistance

2 февр. 2020 г.

We have formed a 3 day descending channel on BTC now but with a light descent. We are at a critical moment here top of channel and also meeting fairly strong horizontal resistance at the same time. Its more likely to drop than break up here but it could break up, if it does, it should be magnificent.

On a fall you can see potential for $9180 support but more likely bottom of channel @ $9080 and secondary surge(wick) support around $8950. It would be perfectly feasible to drop back down to test the current ascending trendline @ ~$8400/$8500. The current medium-length ascending trend line is currently riding about $1000 above the 5 year Ascending trendline, we are still really well positioned for a huge run this year. Technically we have the chance to fall lower, all the way down to the 5 year trendline but look at any touch of the 5 year trendline as a huge buy signal. See one of my recent previous write ups that outline long term posture and potential wedge's/pennant's. If this breaks upward here, we could see 14K being the next real challenge.

Though this is short term short(days), this is just a down cycle in an overall very bullish pattern. I am extremely bullish for 2020, it looks like we have just started our next bull run with a BTC bottom on Dec 16th 2019.

Here in the short term, from vcdepth.io we see heavy sell pressure but it seems to be waning, as asks decline and bids start ascending, its usual indicates whatever market action is nearing.

Not investment advice, DYOR.