Bitcoin Bullish! BIP 91. And test of top of downtrend channel!

In my last post, I completely overlooked the news of BIP 91. Therefore, my short call became null and void. Being away from my desk for almost a week caused me to miss this important news. As of this morning, BIP 91 was signaled by 66% of the miners. This is huge. Only 80% is needed and if locked in, will help prevent a fork. Only 14% more support is needed to lock in BIP 91 and as I understand it tonight miners will have another chance to begin signaling.

Watch the chart at the following link to keep on BIP 91 adaptation: www.xbt.eu/

A few notes of caution before we become bullish again:

1) We are still in the RED downtrend channel
2) We are nearing the top of this channel and will test it's resistance strength soon
3) Typically, a channel resistance/support is not broken without multiple hits
4) RSI is also indicating some resistance soon
5) Middle Bollinger Band to act as resistance soon
6) Huge resistance at $2400 coming up soon

I could be wrong, but all of this indicates to me that we might see at least one more leg down before breaking through these strong resistance points. This theory seems to correlate with our timeframe as well.

I don't know that I see us going back down below our upward sloping RED trendline again now that we are above it. I think it will act as support now and may end up helping us break out of our bearish RED channel in the next few days.

BOTTOM LINE: I expect us to dip a bit in the next few days before breaking out, but not below our RED support.