Bitcoin is having quite a nice rally against the US Dollar since we hit the lows on the 5th and 6th, earlier this month.
We are reaching another critical stage as we approach the longer term down trend line, which is also the top of the channel we currently find ourselves in.
The resistance zone above 12k – 13k is the signal that I want to give me confirmation that we are indeed entering another bullish market.
In the markets we are faced with contradicting signals and we need to consider all possibilities when analyzing the technical.
There is quite solid support around 10 500 and should that fail I would expect more traders to book profits on the medium and short term.
Should we fail to consolidate above 12 000 it is confirmation that we are still in the bearish longer term channel and a retest of the lower levels would be quite possible.
Feel free to discuss this trade idea with me in Discord, safe trades.