$BTC.X #cryptocurrency #BTCUSD still looking for further
From my perspective, the trend channel shown is currently the pattern we're in, which resembles more of a in this environment to me. Why? If the breakdown resolving with the blue box shown had held, I would be more biased to be in this case, but what we saw was a solid bounce that transitioned into a low fall back into this channel. This implies the bounce was not sufficient and strong to result in any reasonable foundation from which we could break above the $13,000 resistance. Right now, I see the channel holding and either (1) more tests of the lower , potentially a 4th time, which would seriously weaken support here or (2) further strength (above the midpoint of the channel) which could begin forming an with resistance at $13,000. I'll be interested once it breaks above here.
On the , shown below, note the difference in support zones shown. Also note that even if we were to breakout from the 4 hour channel toward/above $13,000, we still have the resistance line as overhead resistance. does point to long term consolidation, which could take many months.
I think the most likely event is we have this consolidation with brief periods of capitulation that stabilize into longer periods of sideways action. It's going to be choppy for a while, which is why I'll only look to trade on risk-limited entries (price reversal points from significant capitulation) or after strong support has built up and we begin to see more long term reversal signs.
In the meantime, if you're a trader it may be better to focus on the occasional breakouts in other coins, where the trades are driven more by trading activity then general environment (which is currently sideways/bearish in BTCUSD and overall, in general... consolidating end of 2017). If you're not using Binance yet, you should give it a shot; rapidly growing platform with consistent updates and they're putting significant effort into building a stable, easy to use exchange. Using their token, BNB, lowers trade fees to 0.05% for some coins. If interested in registering, I would appreciate if you use my referral link: https://www.binance.com/?ref=10276631. It helps me a little and your fees are the same!