Price needs to break through this area of resistance to attract more Bulls. I have drawn 2 possible scenarios- you can never be sure what will happen. You just need to prepare for both scenarios. Price may falter at the 16K area before heading south. Or if resistance becomes support we are heading up. My bias is long.
Price action has been influenced by the news about Tether and the 30% tax break in US equities. We see money being moved in and out of different markets. However, BTC has just retested the last point of return FIB level 23.60 and held for the 4th time. This tells me that we are heading up for the meantime. As I keep saying ALTS retest several times - very similar to the EUR/USD- It was always a pair that a new trader started with and traded before expanding to other crosses. I always thought the EUR/USD was less predictable than the other coins but had the most volume.
craigh065
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Hi Gillian, can you explain the concept of confluence as it pertains to technical trading to a noob like myself. cheers.
gillianpatrice
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@craigh065, Hi, confluence is where support/resistance either trendlines or horizontal occur and often you will find a major fib level of the last swing/or move fib overlapping. This is termed a good set-up - the odds are on yourside. For example in my chart above we have 'confluence at the (B) label price held there - it was 1. support , 2. 0.236 Fib level of the last corrective wave 3. upward trendline.
Carolyn Boroden has the best book about Fibs. Read it - its very technical but has been by far the most helpful in making me a profitable trader.
craigh065
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@gillianpatrice, Hi Gillian, thanks very much for your explanation. Appreciate it, I will definitely check Carolyns book out. Cheers