Currently, BTC has touched the (200) line again. As I mentioned in my previous posting, in order for BTC to rise clearly, the price have to break through the (200) line and use it as a support. Whether or not to break this line will be a very important point. I have summarized a few important things from this point of view.
#1. Successful Breach out the (200)
If the price successfully breach the (200) line, the next resistance line is likely to be the (120) line. As indicated by the green arrow in # 1, BTC prices will move gently.
#2. Fail to Breach out the (200)
If the price fail to breach out the (200), BTC is likely to touch the Buying sentiment line('need supported' line) that was mentioned in the posting yesterday.
There may be two branch points here.
2-1. The price rising without breaking the Buying sentiment line, and begins to rise more slowly than the # 1 scenario. Of all the scenarios presented in this posting, this scenario is most positive for in the long-term BTC price increasing.
2-2. Buying sentiment has collapsed and the price go to lower low. (400) line will collapsed too. Because the psychological line collapsed, the (400) line would not function as a support line anymore. In this case, a long-term downtrend is began.
- Response strategy
If the # 1 scenario is implemented, move to anticipate the next decline.
If the # 2 scenario is implemented, observe the price moving until the price reaches at the orange line on the chart. Determine the direction of the investment based on the price action after the orange line.