Bitcoin BTC price is currently still in a bullish trend, but the upward momentum has clearly weakened, with the price repeatedly testing the orange line.
If a small-scale trend change occurs in the short term, it is definitely related to the orange line being broken.
Before the orange line is confirmed to be broken, the price will continue to show a fluctuating upward trend along this line. Once the orange line is broken, it usually pulls back towards the yellow line.
Basically, every round of strong bullish trend will follow this process:
Phase 1: The price successfully breaks through or approaches the orange line (this is the average resistance level).
Phase 2: The price oscillates upward along the orange average resistance zone, gradually digesting the supply.
Phase 3: Accelerated increase until it touches or breaks through the red overbought line.
Phase 4: Entering a fluctuation or correction phase, during which, if it does not fall below the yellow line and enter the fluctuation channel, the trend will continue to rise in Phase 2.
If it accidentally breaks below the yellow line and returns to the fluctuation channel, the price officially enters a fluctuating market, and the bullish trend ends, leaving only to wait for a new trend to slowly brew. $BTC
Phase 5: During the fluctuation process, if the price breaks below or approaches the blue average support level, if the support is effective, it continues to fluctuate; if confirmed to be broken, the trend will shift to a bearish trend.
Therefore, from the current situation, the background of the bullish trend has not changed, and the upward momentum of the price remains at the level of early November. The only point to pay attention to is whether the price will fall back into the fluctuation channel.
