The bitcoin price
BTCUSD
broke above the horizontal channel. However, the volume does not support this breakout. The price is aiming to retest the level of $11,100 as a new resistance level.
Trading plan:
If the price will continue to increase while the volume is decreasing this will confirm the false breakout and the fact that the price is driven by a large number of small traders. In this case, we would start looking for the reversal zone in the area of $11,000.
If the price increase will be accompanied by the increase in volume, then this will be the true breakout and we will end up in the previous horizontal channel between $11,100 and $12,000. After re-checking the level of 11,100 as support the long position can be opened.
If the price will hold between the area of $10,600 and $11,100 this will generate a nice opportunity for trading in the channel. As the long term movement of the BTC price can still be counted as a downward trend, the short selling in the horizontal channel is more appropriate.
BTCUSD
broke above the horizontal channel. However, the volume does not support this breakout. The price is aiming to retest the level of $11,100 as a new resistance level. Trading plan:
If the price will continue to increase while the volume is decreasing this will confirm the false breakout and the fact that the price is driven by a large number of small traders. In this case, we would start looking for the reversal zone in the area of $11,000.
If the price increase will be accompanied by the increase in volume, then this will be the true breakout and we will end up in the previous horizontal channel between $11,100 and $12,000. After re-checking the level of 11,100 as support the long position can be opened.
If the price will hold between the area of $10,600 and $11,100 this will generate a nice opportunity for trading in the channel. As the long term movement of the BTC price can still be counted as a downward trend, the short selling in the horizontal channel is more appropriate.
Comment:
Reaching the target of 0.5 Fiba retracement. Entering the resistance zone. The 1H timeframe shows triple divergence while 4H RSI is getting into the overbought region.
