The parallel down channel has been the overriding structure containing December all-time highs and February lows. A breakout of the channel occurred at the start of March in the form of a rising wedge approaching the 11,500 neckline of an inverted head and shoulders.
11,500 was achieved and held as resistance with a resulting downside break of the rising wedge structure and subsequent fall to 10,000 and the top of the channel. A double top structure had developed along the breakdown to 10,000 which added further downside pressure at the time.
10,000 was achieved and broke as support. The top of the channel also broke as support where bitcoin then fell back within the overriding structure. Looking at the 8-hour chart, March 9th 00:00 candle close was the moment that bitcoin became contained within the channel once again.
After breaking back within the channel, bitcoin recovered slightly to the top of the channel where it held resistance. This further validated the structure and that bitcoin is once again contained within it. In my eyes, this added very significant downside pressure with the fact that the breakout of the channel at the beginning of march is a confirmed fake-out. At the time of writing, looking at the weekly chart (below), the current candle closes in 12 hours and so is not technically valid. However, the current weekly candle illustrates the channel fake-out well and has also formed a bearish outside bar.
11,500 was achieved and held as resistance with a resulting downside break of the rising wedge structure and subsequent fall to 10,000 and the top of the channel. A double top structure had developed along the breakdown to 10,000 which added further downside pressure at the time.
10,000 was achieved and broke as support. The top of the channel also broke as support where bitcoin then fell back within the overriding structure. Looking at the 8-hour chart, March 9th 00:00 candle close was the moment that bitcoin became contained within the channel once again.
After breaking back within the channel, bitcoin recovered slightly to the top of the channel where it held resistance. This further validated the structure and that bitcoin is once again contained within it. In my eyes, this added very significant downside pressure with the fact that the breakout of the channel at the beginning of march is a confirmed fake-out. At the time of writing, looking at the weekly chart (below), the current candle closes in 12 hours and so is not technically valid. However, the current weekly candle illustrates the channel fake-out well and has also formed a bearish outside bar.
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March 9th daily candle close is a potential bull trap