<\/p>\n
The title may sound a bit dramatic but it is true. Bitcoin is on critical crossroads as it maintains trading within the long-term Channel Up formations but any break lower endangers the effort made after the COVID flash crash.<\/p>\n
** Two Channels **<\/strong> – The former is the sequence from the December 2019 low that excludes the COVID collapse led by massive Wall Street liquidation where we had asset-wide flash crashes and sell-offs. That was non-technical. There are also two minor patterns to consider the Head and Shoulders (shown by Triangles) of late January\/ February 2020 and August 2020.<\/p>\n ** Only COVID-like news can extend the current sell-off **<\/strong> As you see the current level Bitcoin is at, is the (d) leg that found (so far) Support on the Higher Low trend-line of the Channel, similar to the March 09 (d) leg. The LMACD is also roughly on the symmetrical Support Zone.<\/p>\n In my opinion this suggests that currently a leg (e) is possible only under liquidation conditions\/ circumstances similar to the COVID sell-off. And if such break-down happens, it invalidates the post-March bullish sentiment.<\/p>\n Whether that is true or not we will see in the following days. But what do you think? Are we going to have a COVID-like sell-off event or BTCUSD will rebound as the Channel Up formation technically indicates?\u00a0Feel free to share your work and let me know in the comments section!<\/strong><\/p>\n Please like, subscribe and share your ideas and charts with the community!<\/p>\n !! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!<\/p>\n Shout-out to TradingShot’s\u00a0top TradingView Coin donor<\/strong>\u00a0this week ==>\u00a0renvar<\/a><\/p>\n<\/div>\n<\/div>\n
\nAs you see on the chart, there are two main patterns involved: The Primary (blue) Channel and the Secondary (orange) Channel.<\/p>\n
\n– The latter is the sequence that starts after the pre-COVID sell-off levels got recovered in late April.<\/p>\n
\nThe common factor of those Head and Shoulders (H&S) patterns mentioned above, is that both (when completed) led to strong sell-offs which however where contained within the technical boundaries of the Channel Up formations.<\/p>\n