As mentioned in the previous post, BTCUSD
came up and made a new all-time
high after the previous rapid move down. I have been very bullish
and I still am. However, there are a couple of good reasons to be careful about going long right here. First of all, the correction happened fast. Often times, a quick correction is followed by a move in the opposite direction. In addition to this, we are in the upper part of the channel. This will act as resistance. Should we get a move above
the upper level of the channel, this is oftentimes followed by a stronger move in the opposite direction. I am still bullish
, but I think we might see another strong correction in the nearest future. The idea shows on the chart is just that. It is very possible BTCUSD
may just continue higher without looking back. But it's probably a good place to be careful.