Bitcoin has broken out of the ascending triangle to the top. Taking the spread at the opening of the triangle the price could go up to approx. 7.200$. At this level the price would hit a swing trend line which is also a resistance. Thinking in EW waves, in this area a turning point B could emerge (green circle). The next move would be downwards, following corective wave C.
The actual trend is accompanied by an ascending RSI, reaching the overbought zone and a bullish MACD. RSI could climb further but one should be aware that the turning point isn´t far away.
I don´think that BTC would manage to break out of the descending trend channel this time. Perhaps after finishing this EW-cycle. If I´m right this would open the opportunity to take some profit on the turning point B for reinvestments in C.
If BTC breaks out of the trend channel to the top, this trend (negative trend channel) would be finished. But I don´t think that´s very probable.
This is no trading advice.
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On 7.000$ we took some profit. Now we´ll see if BTC will fall under the swing trend line 6.644$ or even lower. To confirm my analysis it should fall even lower than 6.000$.
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Ok - we´ve been to early with taking some profits. That´s the reason why I never take all profits, nor do I invest all money. Nevertheless, BTC has reached the resistance at 7.300$ and didn´t manage to break it to the top. Perhaps this will be the turning point we´ve been waiting for.