wolftradx

The chart displays a strong breakout from a prolonged period of consolidation, marked by a descending trendline and several horizontal resistance zones. Prior to the breakout on November 1st, the price had been trading within a range, frequently challenging and failing to sustain a move above the roughly $14.00 - $14.50 resistance area. This level represented a significant hurdle, which was finally breached with notable momentum. The current price action is characterized by a large, impulsive green candle, driving the price well above the previous highs near $17.00. This suggests strong bullish sentiment and a significant influx of buying pressure. The move has cleared all immediately visible overhead resistance, moving into a price territory not seen in the visible history of this chart section. Price Projection Given the sharp, parabolic nature of the recent surge, a pullback or retracement is highly probable as traders take profit and the market digests the strong move. The most immediate and significant potential support zone, previously a major resistance area, is located between approximately $16.00 and $17.00. This zone is crucial as it represents the last major swing high/resistance before the current move. The analysis projects a correction back toward this support zone. The red arrow on the chart specifically suggests a move down to test the $16.00 - $17.00 area. A successful test and bounce from this range would confirm the former resistance as new, strong support, solidifying the recent breakout and paving the way for a continuation of the uptrend toward higher price targets. Failure to hold this support, however, could indicate a false breakout or a deeper correction, potentially back to the $14.00-$14.50 breakout level. In summary, the immediate outlook is for a short-term pullback to confirm the breakout, followed by a potential continuation of the strong bullish trend.

The chart highlights Bitcoin's recent price action within a significant, long-term pattern known as a Broadening/Expanding Wedge or Channel, which often signals increasing volatility and indecision between buyers and sellers. 1. Broadening Formation (Expanding Channel) Structure: The price is contained within two divergent trendlines (one resistance, one support) that are moving away from each other. This is a pattern of increasing highs (Resistance) and decreasing lows (Support). Significance: This pattern suggests high volatility and a lack of conviction, where large moves are fading out as they hit the trendline boundaries, only for the price to reverse and test the opposite boundary. Pattern Goal: Broadening patterns typically resolve with a decisive breakout above the resistance or below the support, which then initiates the next major trend. 2. Key Price Action and Rejection Recent High: The price recently tested the upper boundary of the broadening channel (Resistance) around the $126,000 - $127,000 area and was sharply rejected. Current Move: Following the rejection, the price is now in a strong downtrend, characterized by large red candles, moving towards the lower boundary (Support) of the channel. Breakdown Warning: The chart features a small horizontal box/range that was recently broken to the downside, acting as a minor level of resistance in the current move. 3. Key Support and Targets Immediate Dynamic Support: The next major target for the current bearish move is the lower trendline of the Broadening Wedge, which currently sits around the $108,000 - $109,000 area. Strong Horizontal Support: Confluence exists with a strong horizontal support zone just below the dynamic support, around $106,000 - $107,000. This level has acted as a critical floor previously (as evidenced by the large green candle wick around October 10th). Critical Confluence Zone: The area where the dynamic trendline support meets the horizontal support ($106,000 - $109,000) is the most critical zone for a potential bounce. 4. Momentum (RSI) RSI Reading: The Relative Strength Index (RSI) is currently in a strong downtrend, moving towards the Oversold (30) territory. Bearish Momentum: This confirms the current bearish momentum and suggests that a strong bounce or reversal is unlikely until the RSI either hits oversold or the price reaches the major support confluence. 💡 Trading Implication The technical structure suggests that the price is likely heading to test the bottom of the long-term pattern. Bearish Continuation (Most Likely Scenario): The price is expected to continue its slide to test the $108,000 - $109,000 dynamic support, where buyers are likely to step in for a reaction bounce. Critical Support Zone: The $106,000 - $109,000 zone is the "make-or-break" area. A decisive break and close below $106,000 would be a major bearish signal, likely resulting in a large downward move (a break of the entire long-term broadening pattern).