Recently, BTC began moving in a positive direction toward breaking the downward trendline established at the ATH. This movement has formed a trading channel which is denoted by the white lines. The downward trend line is denoted in yellow. There are several scenarios which could play out as a result of this current setup. First, if the current trend is followed BTC should test the bottom trend line of the channel. If support is not found at the bottom of the channel BTC could see support at $8860.00 (fib line 0.5), $8145.00 (fib line 0.382), or $7290.00 (fib line 0.236). The likelyhood that BTC would fall to $7290.00 is probably low but not impossible. If BTC bounces from the bottom of the current channel it is likely to test the downward trend line. So far, it seems resistance is heavy along that line. If resistance is broken BTC could rise to between $13,500.00 to $15,500.00. This scenario is also less likely with current market sentiment. Personally, I feel BTC will bounce between the bottom of the current channel and the downward trend line. Taking a long or short position in this area is probably not ideal. It should be possible to swing trade within the channel once the bottom of the channel is retested. Long positions could be opened after confirmation of breaking the downward trend line.
This is not investing or trading advice. Make your own decision based on your own research.
Criticism and feedback are very welcome.
This is not investing or trading advice. Make your own decision based on your own research.
Criticism and feedback are very welcome.