On the monthly scale we see 6 months of overall downtrend. We did close the December monthly candle above EMA21 with long wick below it, which is bullish.
As well as long wicks at the top indicate bearishness, long wicks at the bottom are bullish, but what we need to see is confirmation - a new swing low or high. In our case right now, we need to see a new high - above 7800, which is also a strong horizontal level on the monthly & daily and is in line with the downward channel resistance on the daily chart.
As we mentioned before, breaking out of the channel would be significant and would mean a drastic reorganization of the market structure.
If we break down the EMA21 on the monthly, next stop is EMA50 at low 5ks, which is pretty much in line with MA200 on the weekly.
In our previous BTC analysis called “BTC: Fated to Go Below 6k?” we described why 5k is an important support for the price and it remains the target zone until we break out of the downward channel.
What do you think about it? Will the 31-Month EMA hold or are we going lower? Give us your opinion in the comments!
If you like the idea, please, hit the Like button and subscribe to the profile in order not to miss our updates.
The information given is never financial advice. Always do your own research.
As well as long wicks at the top indicate bearishness, long wicks at the bottom are bullish, but what we need to see is confirmation - a new swing low or high. In our case right now, we need to see a new high - above 7800, which is also a strong horizontal level on the monthly & daily and is in line with the downward channel resistance on the daily chart.
As we mentioned before, breaking out of the channel would be significant and would mean a drastic reorganization of the market structure.
If we break down the EMA21 on the monthly, next stop is EMA50 at low 5ks, which is pretty much in line with MA200 on the weekly.
What do you think about it? Will the 31-Month EMA hold or are we going lower? Give us your opinion in the comments!
If you like the idea, please, hit the Like button and subscribe to the profile in order not to miss our updates.
The information given is never financial advice. Always do your own research.
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