Crypto-Crown

$BTC areas of support/resistance (confirmation areas)

POLONIEX:BTCUSDT   Bitcoin / Tether USD

Anyway, BTC broke the channel I had in yesterday night. Was flirting with the support line all yesterday which typically signals weakness and then we had a big bearish break on heavy volume with a 2 hour close well below the support trendline. This is pretty worrying for me as these channels have never broke during prior consolidation periods. So we dropped down to the support which happens to be the prior breakout level around 17500 Poloniex where we're trying to hold currently.

TBH this does not look good. I'm out and will only buy back in if we have a 2 hour close above the upper resistance trendline on good volume around about 18.9k Poloniex. I'd be leaning towards testing lower support before a rally back to prior levels.

Let's look at a daily to get the macro view..

So some interesting things here.. MACD looking like it could reverse to the downside.. the last time this happened was the move from 7.5k to 5k and the China episode where we went from 5k to 3k area. RSI almost under the overbought area which typically means the move is over (not always for bitcoin but in more traditional markets).
We can see here clear support around about 16k which happens to be around the 20EMA and the 50EMA still should hold us strong around about 12.2k

Areas of support
17.6k
17.1k
16.7k - *** this must hold as it's the long term support line. If this fails it's a long way down till next support around 15.7k and then 12.3k

All of these are estimates and not exact numbers. Can still go either way so these are the levels I'm interested in. This would be the definition of a no trade zone for me as it stands. Maybe could play RSI oversold bounces off lower support but I wouldn't take a long term long position until we get confirmation

Confirmation back to stability/upside - a 4 hour close on good volume above the uppermost resistance line around about 18.9k

yes I know my confirmation numbers are high, but to me this is a very dangerous area and I would not want any long position until BTC proves itself twice.

So those are the things I'm looking at, this is not financial advice as always and I'm just sharing my thoughts here.

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