Let's read the important 1W chart, and let's interpret what price action is telling us. Support, where BTC is right now, is very, very strong. The green trend-line has been able to provide support since November of 2017. If we breakdown this line we can see that it offers a lot of support and not much resistance, it also indicates that this area is very important to BTC for fundamental reasons. As of today, we are about to close 3 weekly candles above this support line, which is yet another good sign of stability. Also, in this chart, the 50MA is acting now as support and we are currently working on the second candle staying above it. Remember that we can dip below support, but we can not close below support, once we close more than 3 candles, that old support becomes new resistance. Lastly, we are about to have a crossover of the 50MA and the 100MA, this is important as it is yet another positive indicator of a secular bull market.
I've found an interesting little battle zone that can give us an indication of how strong Support v. Resistance will be. Take a look at the 4H chart below, if we manage to stay above the 50MA that's good for the overall big picture. As you can see we are now on an uptrend and have been for a few days, but we have hit strong resistance in the form of the 100MA and a months-long resistance line, this will be a tough line to go over but if we are bullish we will go over it. We've got rejected once, let's keep an eye on this bit of drama. So long as we stay above the green trend-line the move to the 200MA on the daily time-frame is still a possibility.
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NOW, THE LEGEND;
Support trend-lines are green
Resistance trend-lines are Red
Horizontal support lines are white, the thicker the stronger the support
50 Moving Average is yellow
200 Moving Average is white
THE TREND: Going Down but finding stability
THE OUTLOOK: Beginning to see the end of the downtrend a rally may be coming soon.
I've found an interesting little battle zone that can give us an indication of how strong Support v. Resistance will be. Take a look at the 4H chart below, if we manage to stay above the 50MA that's good for the overall big picture. As you can see we are now on an uptrend and have been for a few days, but we have hit strong resistance in the form of the 100MA and a months-long resistance line, this will be a tough line to go over but if we are bullish we will go over it. We've got rejected once, let's keep an eye on this bit of drama. So long as we stay above the green trend-line the move to the 200MA on the daily time-frame is still a possibility.
Follow me and you'll know exactly which coins to buy and when to buy to maximize your profits.
Hitting the "Like" button is like a tip, please don't forget to do so after reading this is your way of paying me for my time.
NOW, THE LEGEND;
Support trend-lines are green
Resistance trend-lines are Red
Horizontal support lines are white, the thicker the stronger the support
50 Moving Average is yellow
200 Moving Average is white
THE TREND: Going Down but finding stability
THE OUTLOOK: Beginning to see the end of the downtrend a rally may be coming soon.
Comment:
The great thing about finding these battle zones is that they for one give you an idea of things to come and 2, they have to be resolved quickly. In this case we either go back down to support -- which will show weakness, go over resistance by ranging in the next few hours, which is an indication of wanting to stay up or go over by moving up with a moderate green candle, which means we are still bullish. Keep in mind that this is only a minor trend.
Comment:
This is what you call a perfectly drawn support and resistance line, and when you do this you can rely and make trades accordingly. Now, This is a very strong rejection by a very strong resistance line. It will take a lot more fuel to break through, does BTC have what it takes or will it melt?
Comment:
Not exactly looking good for BTC, in just one day it got rejected by the 50MA by the 100MA and by the down trend-line, let's keep watching.
