Bitcoin has reached the upper side of its broader range, which is a slightly upwards pointing trend channel.
At 12200 there was also a resistance level and the upper trend line of a steeper trend channel.
Is this a reason to short at 12.200? I would say yes, but only for very experienced and aggressive traders (with tight stop).
Another reason this level was a target: it was also a second leg up after the breakout of the tight range from 11.400-700.
The marked long entries are signals to enter because you expect it to go up inside the range towards the resistances at 11.700 and 12.200.
Both entries confirmed lower trendlines of uptrend channels. Targets for these trades would be at 11.700 and 12.200.
What is going to happen next?
Right now prices are working lower inside a downtrend channel, but there is support at the former resistance level (11.700).
From this point we could see another push to 12.500. The uptrend channel has been broken right now, but often after a break we see a new high.
But as long as the most recent small downtrend is still intact I also see downside potential, because BTC is still inside the broader range which means we could see 11.400 again in the next hours.
At 12200 there was also a resistance level and the upper trend line of a steeper trend channel.
Is this a reason to short at 12.200? I would say yes, but only for very experienced and aggressive traders (with tight stop).
Another reason this level was a target: it was also a second leg up after the breakout of the tight range from 11.400-700.
The marked long entries are signals to enter because you expect it to go up inside the range towards the resistances at 11.700 and 12.200.
Both entries confirmed lower trendlines of uptrend channels. Targets for these trades would be at 11.700 and 12.200.
What is going to happen next?
Right now prices are working lower inside a downtrend channel, but there is support at the former resistance level (11.700).
From this point we could see another push to 12.500. The uptrend channel has been broken right now, but often after a break we see a new high.
But as long as the most recent small downtrend is still intact I also see downside potential, because BTC is still inside the broader range which means we could see 11.400 again in the next hours.
