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Following the failed break out attempt from the symmetrical triangle, and the aggressive crash back down of price from a strong horizontal resistance, a lot of crypto traders are beginning to get worried and nurture the idea that the Bitcoin market might actually be entering into a bearish phase.
Well, in this bitcoin analysis, I will be taking a top-down approach in order to clarify what trend the market is currently in, what I expect price movements to look like both long term and short term, the strong supports and resistance to look out for and what my future outlook for the cryptocurrency is.
Is Bitcoin Experiencing a Trend Change or Still in A Bull Market?
This question can best be answered from the weekly timeframe. Here we can see a clear uptrend channel that has been formed since 2013. This channel is still holding strong and as long as the price remains within the channel and is still trending, then my long term outlook for the overall bitcoin market remains bullish even if the price touches the $5000 region.
Short Term Analysis and Trading Opportunities to Look Out For
Now that I have answered the question of what trend the Bitcoin market is currently in, it is time to point out a few high-quality trading ideas you should be watching for right now.
- Bitcoin Forming a Rising Channel
One of the trading ideas currently gaining traction and supporting my bullish bias for bitcoin is the current rising channel forming on the lower timeframe. If this pattern plays out, then we might see bitcoin temporarily weaken and fall to the $8000 region which serves as the base of the rising channel.
If price holds at this region and bounces off of the channel, then we might resume the bullish trend and finally see a break of the $10,000 psychological resistance level and even see price rise as high as $12,000. However, if price breaks below the channel, then we might see more bears come into the bitcoin market for the short term.
- Bitcoin Attempts to Break Out from The Symmetrical Triangle Again
After the first failed attempt bitcoin might actually be gearing up to attempt another breakout in the coming days. There are three scenarios for this pattern:
- One is the immediate breakout of the top channel without the price going down to the base channel
- The second is price bouncing off the base channel and then heading up
- The last is price breaking the base channel of the symmetrical triangle and heading lower
- Bitcoin Continues to Range
Another important price action scenario I will be talking about in this Bitcoin Analysis and is important you should be watching out for is a ranging bitcoin market.
If this occurs, we can expect the market to continue its sideways movement. however, this does not change my outlook for the bitcoin market as my short term bias still remains bullish and will be confirmed once price breaks through that $10,000 psychological resistance level. The important support to be watching out for is the 8686 price level.
