Crypto Analysis | BTC - No Room For A Correction

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BTC Is Once Again At Critical Support

This support has been established over the last 8 months and it's no surprise that we are knocking on its door so to speak. In fact, back in June I showed how I thought BTC would be moving in the coming months and so far it's done exactly that. Here is the chart from back then:

Since we did not go beyond the 35k mark, my chart suggests a further correction. If so, then we could expect price going back to about 24k in the coming months to find support at the macro trend line. But somehow I wonder if that's going to happen.

-General sentiment is still bullish for BTC
-Mostly positive developments regarding adoption/regulation
-Halving event coming up in less than a year

There is no real reason for why BTC should be making a bigger correction at this point in time. With that being said: markets are irrational. So of course anything can happen. But I have a hard time believing that we will be entering a multi month selling cycle. To me it looks more likely that price will find support and head back up it's rather slow climb.

Can BTC continue in this channel?

There is a clear channel in which BTC is currently moving and looks like this:

As outlined previously, the slope of the channel is sustainable with only about an 8% gain per month. There are at least 3 major resistances coming up seen in red (roughly indicated here). If price bounces off of the support I think the 35k resistances will easily fall. The ~48k one will be harder to overcome. And I would still expect a rejection here. BTC never went above its previous ATH this fast; so it's definitely reasonable to assume a bigger correction should price intersect with this range.

Conclusion

There is no obvious reason for why BTC should head back into a mini bear market atm. I would expect price to head back up and target the ~48k area. The halving event is also very close and is scheduled for around April next year. This has always acted as a buying pressure so far, although it can be a bit delayed.

 

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As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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