Overnight news from Korea caused BTC to drop about 13%, while the validity of this news piece remains in question, the support trendline for this current pattern emerges.
As you can see, we had a decisive bounce off the support trend line, which happens to be the neckline off the massive head and shoulders every 'expert' has been calling..
Quick little lesson in Head and shoulder patterns, volume is the confirming indicator in these patterns, we however have not seen that, volume was on the smaller side and therefore I do not lean towards that scenario playing out at this time in place.
Of course, if the neckline around 13k is broken on a 4 hour close with volume confirmation then I will heavily lean into a huge bearish scenario for BTC but so far, this has not happened
So back to the action today, volume is strong on the bottom indicating buyers have stepped in around the daily 50ema and we are still living above the support trend line. Because of this, I would be leaning towards further consolidation in the range between the upper most resistance line around 16.5k and the bottom most support trend line around 13.5k
Not financial advice.
As you can see, we had a decisive bounce off the support trend line, which happens to be the neckline off the massive head and shoulders every 'expert' has been calling..
Quick little lesson in Head and shoulder patterns, volume is the confirming indicator in these patterns, we however have not seen that, volume was on the smaller side and therefore I do not lean towards that scenario playing out at this time in place.
Of course, if the neckline around 13k is broken on a 4 hour close with volume confirmation then I will heavily lean into a huge bearish scenario for BTC but so far, this has not happened
So back to the action today, volume is strong on the bottom indicating buyers have stepped in around the daily 50ema and we are still living above the support trend line. Because of this, I would be leaning towards further consolidation in the range between the upper most resistance line around 16.5k and the bottom most support trend line around 13.5k
Not financial advice.