Yesterday I watched Bitcoin rally from $7,750 and break the 3 day bear channel. I drew an arrow from $8,000 to $8,400 and shortly afterwards watched the price pull back under $8,000.
It continued to breakdown to under $7,750 and created a new local low (blue arrow). That is usually when the sell volume drastically increases. Traders wait to see if support can hold and create a double bottom.
As soon as that price falls through the bears will pounce. That didn’t happen this time, and instead the price quickly reversed.
That was a very good sign at such a crucial juncture. I made multiple tweets saying not to dump just yet as well as to reaffirm my position that we should rally to $8,400.
Today I am going to be watching $8,200 - $8,400 for resistance. First we should see the third point of contact on the 22 day bear channel (red dotted). If we get past that then we will meet horizontal resistance at $8,400.
If we can get through all of that then we would be on track to test the 3 ½ month bear trend around April 4th.
If we can’t get through that resistance and break down below $7,500 again then I expect us capitulate to $5,000.
Happy trading and feel free to follow!
It continued to breakdown to under $7,750 and created a new local low (blue arrow). That is usually when the sell volume drastically increases. Traders wait to see if support can hold and create a double bottom.
As soon as that price falls through the bears will pounce. That didn’t happen this time, and instead the price quickly reversed.
That was a very good sign at such a crucial juncture. I made multiple tweets saying not to dump just yet as well as to reaffirm my position that we should rally to $8,400.
Today I am going to be watching $8,200 - $8,400 for resistance. First we should see the third point of contact on the 22 day bear channel (red dotted). If we get past that then we will meet horizontal resistance at $8,400.
If we can get through all of that then we would be on track to test the 3 ½ month bear trend around April 4th.
If we can’t get through that resistance and break down below $7,500 again then I expect us capitulate to $5,000.
Happy trading and feel free to follow!
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