The price of Bitcoin BTC is still in a bullish trend, but the upward momentum has obviously weakened, and the price has repeatedly tested the orange line.
If there is a small-scale reversal in the short term, it must be related to the orange line being broken.
Before the orange line is confirmed to be broken, the price will continue to fluctuate upward along this line. Once it falls below the orange line, it will usually fall back to the yellow line.
Basically, every round of strong multi-head trend market will follow this process:
Stage 1: The price successfully breaks through or approaches the orange line (this is the average pressure level).
Stage 2: Oscillating upward along the orange average pressure belt, gradually digesting the supply.
Stage 3: Accelerate the rise until it touches or breaks through the red overbought line.
Stage 4: Enter the oscillation or callback stage. During this period, if it does not fall below the yellow line and enter the oscillation channel, the market will continue to rise in stage 2.
If it accidentally falls below the yellow line and returns to the oscillation channel, then the price will officially enter the oscillation market, and the bullish trend will end. We can only wait for the new trend market to slowly brew. $BTC
Stage 5: The price falls below or approaches the blue average support level during the oscillation process. If the support is effective, it will continue to oscillate. If it is confirmed to fall below, the trend will turn into a bearish trend.
Therefore, from the current situation, the general background of the multi-head trend has not changed, and the price increase momentum remains at the level of early November. The only point to pay attention to is whether the price will fall back into the oscillation channel.
