On the log chart, BTCUSD has held for over a month above the long-term trend line drawn between the June 2019 and February 2020 high. Many people seem to be at odds as to whether this support needs to be validated on the non- log chart by testing support at the 8200 to 8400 level; however all drops below 9000 have been bought up very quickly for over two months now. It is increasingly unlikely that there will be any further drops below that trend line, so current range between 8800 and 9100 is a good buying opportunity. Major resistance is present at around 9300 and slightly above 10000, so I will be looking for 10 and 20 day MAs to converge on a golden cross before pyramiding the trade. At that point, 13000 to 16000 levels will not be far behind and will be good places to set Take Profits because a re-test of support at above 10000 (realistically anywhere between 10000 and 12000) will then be highly probable.
Comment:
Daily closes below the trend line will change my bias and I will then be looking to re-enter at the 78.6% and 63.8% fibonacci retracement levels.
Trade active:
Active since slightly below 9100.
Comment:
Short term target is now 12000.
