BTC was riding a 3 month descending channel and recently finally broke up out of channel but has since come back down to test support at the previous top of channel resistance. We are holding support right now and this pattern is also very much in line with what to expect on a break out, test support first, then run. This also could end up, yet again just being a new, slightly higher descending channel. There is a chance we could break back down into the old channel and bottom of that channel could be as low as 5k (improbably but possible) but we also see a lifeline of strong historic support at $7800.
If we retain a descending channel or break downward to $7800, we are still facing a critical juncture in December around 12 or 19 December. The line you see intersecting the current trend line at this date is where we intersect with the overarching trend that started beginning of this year. If we come up off the trend line it could postpone that intersection. To go below that initial trend line is a strong signal of reversal of our nearly year long bull run. What we really need is for BTC to make it over 14K again so we can confirm the long term market overall as bull.
Order books do not suggest we are in oversold territory yet which is usually accompanied by an increasingly positive MDR> vcdepth.io/coins/bitcoin-btc
Overall I want to believe that BTC will hold this current support trend line but more so I want to believe we will not cross below the original trend line. I am bullish BTC though currently cautious.
I bought in at 8489.13 // whats a good TP? ( i understand the risk and you providing me with advice) thanks.
EncryptShawn
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@SynergyPower, seems like you did pretty well, absolute bottom and top every time is impossible. If I were swing trading this, I would consider this a good entry point but if support doesn't hold up I wouldn't hesitate to eat a small loss and consider re-entry at $7800 if it seems viable... Really I am nervous if we fall back in that channel and personally probably wouldn't hold a long position while sitting inside top of such a massive channel and current volatility.
Ultimately the trendline collision coming soon, I am apt to believe the initial trend line will prevail and reverse the descending pattern we have had ever since 14k. That trendline also seems like a pretty good buy op with same "bail on support failure" precaution. Good luck either way.