Well, BTC/USD seems to have lost steam on it's down trend...reaching lows around 6,500, and it looks like we are bouncing back. We are seeing higher highs and higher lows. When drawing a fib, we see we have a reversal that price is currently rejecting at the 61.8% fib level (yellow highlighted line). A break in price above the 61.8 level could mean an increase in price back to the 7,600 area. The 200 moving averages appears to be slowing down from as sharp of a decline. We also see that price action is more recently rising above the 8 and 18 moving averages. The 200 moving average is not experiencing as steep of a decline, and if price rises we should also see even more of a leveling off of the 200 moving average. We also can draw a channel which is following along the lines of price action, as it moves through consolidation with higher highs. I believe we watch price to see how it responds at the 7,200-7,260 area. If we break this area we could see price move to 7,600 for the short term.
Please note I am not suggesting this trade, but it is purely for demonstration and education purposes. We must watch and wait to see how it plays out. I am always a student!
Please note I am not suggesting this trade, but it is purely for demonstration and education purposes. We must watch and wait to see how it plays out. I am always a student!
Comment:
What is currently happening is the reason why we watch and wait and not jump into trades before conformation. Price did not reach the area I stated to watch but is now heading toward lower price. Still watching to see next steps.