Looking at the chart, I see several bullish signals:
At the bottom of a bullish pendant on the weekly timeframe (green), approaching the apex.
100 EMA support on the daily timeframe (blue)
Hitting the lower support trendline on the shorter timeframe (purple)
Proximity to the 0.382 Fib on the broader timeframe from the ATH to the subsequent low
On the lower side of the overall BTC growth channel (purple shaded area) that stretches back to pre 2016 levels (see my previous analysis)
We have also been bouncing off and hovering at the psychological $10,000 level, building support.
And I see a very strong buy support on Coinbase (but then how much can we really count on that?)
That said, we are at the top of the local downtrend channel, which could take us down further if we break below the 100 EMA and lower pendant line. Also, BTC is extremely unpredictable these days and could just as easily go in the opposite direction relative to the indicators. Furthermore, I just placed a buy order and price has dropped $80 as I write this so chances are good that we're going down...
I see a 2:1 risk reward, based on the possibility of returning to the top of the pendant vs. falling to the 0.382 fib level.
At the bottom of a bullish pendant on the weekly timeframe (green), approaching the apex.
100 EMA support on the daily timeframe (blue)
Hitting the lower support trendline on the shorter timeframe (purple)
Proximity to the 0.382 Fib on the broader timeframe from the ATH to the subsequent low
On the lower side of the overall BTC growth channel (purple shaded area) that stretches back to pre 2016 levels (see my previous analysis)
We have also been bouncing off and hovering at the psychological $10,000 level, building support.
And I see a very strong buy support on Coinbase (but then how much can we really count on that?)
That said, we are at the top of the local downtrend channel, which could take us down further if we break below the 100 EMA and lower pendant line. Also, BTC is extremely unpredictable these days and could just as easily go in the opposite direction relative to the indicators. Furthermore, I just placed a buy order and price has dropped $80 as I write this so chances are good that we're going down...
I see a 2:1 risk reward, based on the possibility of returning to the top of the pendant vs. falling to the 0.382 fib level.
Trade active
Comment:
We got a nice bounce off the local support and bullish pendant. I was a bit concerned for a moment. As I looked at things closer, I also found a couple volume gaps above 10,000 and above the local downtrend channel, which is another signal that things could move upward soon:
