As of today's sell-off, Bitcoin has reached the bottom of the bullish channel in which it has been trading since the summer.
Today's sell-off in the market was triggered by fresh COVID news. A new variant has been discovered which is even more dangerous than the current Delta variant. Several countries and regions banned flights from the southern African region, which spooked the market and triggered a sell-off.
News is always scary since conventional TA is much less usable. However, more COVID bad news = more economic stimulus = good news for assets. So I'm expecting this news to blow over and that Bitcoin will hold the channel's support.
Before entering a trade, wait for a strong larger time frame candle to confirm the bounce. Risk loving traders might want to step in already now.
After seeing this post, I just read online that most traders use log scales??? Thank you for your post.
FieryTrading
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@stefan4824, Yes, log scales make crypto charts much easier to read since they correct for exponential growth. A chart will not tell you a lot of info when the difference between the low and the high is very big. See chart below for reference.