Quick update here after the weekend. We've been watching the grind downward with continued lower highs and lower lows, giving us the stair stepping down pattern. Each red line indicates just another lower high formed and BTC keeps sinking lower.
We've also been watching our EMAs to serve as resistance. BTC finally got above 12 EMA on 4 hour chart and thus far rejecting at 26 EMA. So EMA resistance continues to be in play.
We were also watching our long personal opinion of strong support at 7400-7750 and eventually seeing that glass cave and expecting it to then serve as resistance. We saw one initial test with a bounce from $6775 to reject at $7392 before going down to our current bottom of this downtrend, $6526.
Bears - if I were playing Bearish, continue to be comfortable as long as EMAs continue to serve as resistance and bulls aren't able to get above prior lower highs. Or just play the potential resistance zone of 7400-7750 and see if bears can keep price action below.
Bulls - while this bounce from $6526 is significant for traders, its still nothing special in terms of changing trends. It is the first step however. Bulls will need to set their lower high or ideally go ahead and get above $7400 and reject somewhere within the zone I've had outlined for months now. Upon rejection, they'd need a higher low compared to $6526 and then shoot for the higher high. Remember the goal is always to shift from these lower highs and lower lows to higher highs and higher lows. Get out of the stair steps down and return to stair stepping up pattern. Until these shifts occur, nothing really too exciting for longer term positions. Traders can enjoy the bounce opportunities but also need to have stop losses in play to limit any significant blows from continued lower lows and/or set profit taking targets on the bounces up to lock in profits.
So from here lets see if bulls can beat 26 EMA, get into this 7400-7750 expected resistance zone, shift from lower highs and lower lows to higher lows and higher highs.
Just My 2 Sats!
We've also been watching our EMAs to serve as resistance. BTC finally got above 12 EMA on 4 hour chart and thus far rejecting at 26 EMA. So EMA resistance continues to be in play.
We were also watching our long personal opinion of strong support at 7400-7750 and eventually seeing that glass cave and expecting it to then serve as resistance. We saw one initial test with a bounce from $6775 to reject at $7392 before going down to our current bottom of this downtrend, $6526.
Bears - if I were playing Bearish, continue to be comfortable as long as EMAs continue to serve as resistance and bulls aren't able to get above prior lower highs. Or just play the potential resistance zone of 7400-7750 and see if bears can keep price action below.
Bulls - while this bounce from $6526 is significant for traders, its still nothing special in terms of changing trends. It is the first step however. Bulls will need to set their lower high or ideally go ahead and get above $7400 and reject somewhere within the zone I've had outlined for months now. Upon rejection, they'd need a higher low compared to $6526 and then shoot for the higher high. Remember the goal is always to shift from these lower highs and lower lows to higher highs and higher lows. Get out of the stair steps down and return to stair stepping up pattern. Until these shifts occur, nothing really too exciting for longer term positions. Traders can enjoy the bounce opportunities but also need to have stop losses in play to limit any significant blows from continued lower lows and/or set profit taking targets on the bounces up to lock in profits.
So from here lets see if bulls can beat 26 EMA, get into this 7400-7750 expected resistance zone, shift from lower highs and lower lows to higher lows and higher highs.
Just My 2 Sats!
