As I explained in previous ideas, if Bitcoin broke the bullish channel its target was at 25k . I would expect it to make a pullback before reaching that target, but the sell-off is sometimes very direct. Bitcoin’s price has reached the target I set and right now it is making a sizable bounce in that area. We will see how the 1 day candle finishes.

My concern right now is the following. As we see in this other image below, right now Bitcoin is also breaking the main trend line . Which is very concerning because if it doesn’t finish above 29k today, the following scenario looks very bad. In the next few days it should reject this main trend line in order to remain bullish .

Another thing to consider is the position of the moving averages. On the one-week chart of Bitcoin we see that the price is very close to the 200-period moving average. It is quite possible that it is very attracted to it and wants to go and visit it. This would be another possibility to stay bullish if it does not lose this level and bounces above this moving average.

That’s all for today folks! Lots of encouragement to all of you who are in cryptos, I am convinced that the crypto market will recover from this one.

Cheers!