We are at the edge of the downward channel and many believe BTC will breakout. However, I see a confluence of resistances which is compelling me to be cautious
Here are the resistances on Weekly chart
1) The downward channel top (Red)
2) 200 EMA (pink) which acted as major resistance since Dec'18
3) Previous local High, going above that will cause a Higher High for the first time in this bear market
4) RSI is at Resistance which was previously support before Nov'18
On the positive side
1)There was no sharp rejection of price at 200 EMA resistance unlike previous times and price climbed up steadily
2) The price is well above the 50 & 100 DMAs
3) RSI is starting to peak out of the resistance
Learnt from a wise trader "Don't buy at resistance. Don't sell at support"
A safer trade could be to wait for a breakout and then there is likely to be a retest of the downward channel to act as support which is now acting as resistance. If the support holds, buy into it
Of course, the price just rocket out without retesting the channel. Your choice to take a trade, but use a stop loss
Here are the resistances on Weekly chart
1) The downward channel top (Red)
2) 200 EMA (pink) which acted as major resistance since Dec'18
3) Previous local High, going above that will cause a Higher High for the first time in this bear market
4) RSI is at Resistance which was previously support before Nov'18
On the positive side
1)There was no sharp rejection of price at 200 EMA resistance unlike previous times and price climbed up steadily
2) The price is well above the 50 & 100 DMAs
3) RSI is starting to peak out of the resistance
Learnt from a wise trader "Don't buy at resistance. Don't sell at support"
A safer trade could be to wait for a breakout and then there is likely to be a retest of the downward channel to act as support which is now acting as resistance. If the support holds, buy into it
Of course, the price just rocket out without retesting the channel. Your choice to take a trade, but use a stop loss
