Previously we have seen that the priceline of Bitcon formed a very big and previous month’s candle stick was closed above the $12K that is also the 0.786 level of this . Therefore we were expecting that the priceline now may retest the 0.786 Fib projection level that was previously working as resistance and now will work as support.
In the mean while the priceline of the leading cryptocurrency is also moving within an . Previously we have see that the price action was at the resistance of this channel that was at $14K. The previous has been closed above this level. Therefore now there are less chances that the price action will retest the support of this channel that is at $12K and also the support of as we have discussed above. Now if the correction starts then we may see the priceline to retest the resistance of the channel as support. But incase the retest of resistance as support will be failed then price action may retest the channel’s support at $12K.
Previously I mentioned that if the price action will be at resistance and the , and will be turned then a move to the downside up to the support of channel will be confirmed. But we can observe that all these indicators are still even after visiting the overbought zones.
Now if we take a look at fear & greed indicator then 1st warning sign has been appeared. But we need to take care of this indicator with the combination of , and if these indicators will also turn then a big correction can be expected.
The priceline of BTC is still strong and bulls are showing a fearless buying and broke out the channel. However, now we should set the 1st stop loss point at the resistance of the channel that is now working as support and 2nd at the support of channel.