Yesterday I expected a bounce off of $7,950 support, but I stayed away from opening a long after getting burned these last few weeks. Today we are looking at the last line of support before it will be time to put on my bear suit and join the enemy.
If you can beat em, join em!
We are currently bouncing off of the trend line (green dotted) that I drew on May 15 in the Bitcoin 2018 Bull Trend Post. I will be watching very closely to see how much steam this bounce has behind it.
At a minimum I expect it to take us back to $7,950. That is where the bears would be waiting to turn prior support into resistance. That would also be the third point of contact on the down trend that started on 5/6 (red dotted). The third touch is expected to be the most potent and that is where we will see confident selling out of the bears.
If we can make it through the strong resistance at $8,000 - $8,200 then bulls will be able to breath a momentary sight of relief. Conversely that area would provide an attractive risk reward ratio for a short entry if you're into that kind of thing.
I will also be closely watching for the completion of the triangle that started forming on 2/6 (pink). It will be 66% completed within the next 3-5 days and that it when a breakout is expected to occur. Breaking the green bull trend would also have us breaking down through the triangle.
Talk about a crucial price point!
Comment if you have something to say. Smash the like if you found this helpful and definitely finger that follow!
If you can beat em, join em!
We are currently bouncing off of the trend line (green dotted) that I drew on May 15 in the Bitcoin 2018 Bull Trend Post. I will be watching very closely to see how much steam this bounce has behind it.
At a minimum I expect it to take us back to $7,950. That is where the bears would be waiting to turn prior support into resistance. That would also be the third point of contact on the down trend that started on 5/6 (red dotted). The third touch is expected to be the most potent and that is where we will see confident selling out of the bears.
If we can make it through the strong resistance at $8,000 - $8,200 then bulls will be able to breath a momentary sight of relief. Conversely that area would provide an attractive risk reward ratio for a short entry if you're into that kind of thing.
I will also be closely watching for the completion of the triangle that started forming on 2/6 (pink). It will be 66% completed within the next 3-5 days and that it when a breakout is expected to occur. Breaking the green bull trend would also have us breaking down through the triangle.
Talk about a crucial price point!
Comment if you have something to say. Smash the like if you found this helpful and definitely finger that follow!
emasar Indicator is available for purchase at alphanalysis.io/product/emasar/