Grand Rising traders, it's 9:12 am on Tuesday, May 28th. The charts have been exhibiting significant channel trading since our last discussion a week ago. I should have informed you that I would be absent for the holiday weekend. I had intended to record a video explaining my absence, but I mistakenly thought I had already done so. Please accept my apology.
Moving on to the current situation, we appear to be facing substantial resistance in this area, roughly between the 23.6% and 38.2% Fibonacci retracement levels marked as "Must Pass Resistance Area" on the chart. The market is struggling to surpass this point, making the journey to 70k even more challenging. If the current candle continues to turn red, we are likely to form a lower high, reinforcing the existing downtrend, as you can see from the diagonal line.
Unless we break through that diagonal line, or even if we don't, I anticipate more sideways movement if we cannot surpass this resistance level, which lies almost at the midpoint of the two Fibonacci levels. Failure to break through this resistance could lead us towards the 65k trigger point, potentially resulting in a retest of that level. Hopefully, on the way down, we'll find support from the newest consolidation line, similar to how it caught us earlier. It should still be active enough to provide support, but I cannot be certain.
Alternatively, we might encounter a bounce from the old consolidation line, as it has been active and provided support previously. However, the current resistance is hindering our progress towards 70k. Without a strong bullish push, we risk gaining bearish momentum. If we cannot break bullish, we will likely break bearish, as we cannot continue sideways for much longer. Something has to give.
We've been engaged in sideways channel trading for quite a few days now, over a week, to be precise. We entered this channel on the 21st and haven't been able to break out of it. Our floor is the old consolidation level, or you could even consider the 50% Fibonacci retracement level as the floor, with the 70k profit point as the ceiling. Within this broader sideways consolidation, we're experiencing shorter, smaller consolidation periods, forming mini-channels that don't last long.
This entire phase, although not explicitly marked as a consolidation, is indeed a consolidation period. That's where I'll leave you for now. I'll see you again tomorrow. This is the Dark Sage, signing off. Have a blessed day and peace.
