Bitcoin has begun to make a serious of higher highs and higher lows and there could potentially be a bullish channel emerging – at least in the short term.
For now, there is a bullish sentiment channel emerging since Bitcoin broke out of the bearish channel at the end of April. What else is this chart telling us:
- Sellers have been defending the supply zone around $244 with price capped at this level over the last few weeks.
- We have made higher highs and higher lows and we could project a bullish channel defining the supply and demand zones for this price action
- The $255 price level looks interesting and there may be some supply there. Why?
- Previous supply form the start of April may be defended.
- Top of the short term channel.
- Multiple abcd patterns and equidistant swing completing into that zone may get the attention of the shorts.
- Close to the half way back level of the price move from the top of the bearish channel to the bottom made mid April. The half way back is a key psychological level watched by many market participants.
Bitcoin has been moving in a very tight range the last couple of days – this compression usually precedes a break out in this market. For now, the SparkProfit sentiment is to the long side indicating our players are bullish – but this could go any way!
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