Let's get straight into this updated view of BTC/USDT! As you can see we have opened above the 50 EMA (on the daily log scale) which is a great sign as it helps confirm the area between 8286 and 7858 as good support. However, we now have quite a lot of resistance to contend with being the black dotted trend line directly above, the EMA 200 just above that; AND the heavy resistance between 9080 and the 23.6 Fib level. This is the Battle Royale I was referring to in the title of this analysis!!
It's definitely going to be a bull vs bear battle here to try and push through this convergence of resistance. I have a feeling that given we have opened above the 50 EMA, if we close above it on the daily with some stronger volume (volume is lacking at the moment) then we should be able to push through the down trend channel. In this scenario, even if the 200 EMA acts as resistance we might be able to find support on the break out side of the down trend channel, thus confirming it as new support. If this does happen, we should be in a good position to then tackle the 200 EMA and the first line of resistance above that at 9080!
it's worth noting that momentum on the MACD is still trending upwards, but has backed off just a slight little bit. Worst case scenario is if we are rejected at the dotted down trend line, then we simply bounce off support below it at 7858 and then build more momentum to take it and the 50 EMA on again in 'Battle Royale - Round 2'; which in my opinion is simply delaying the inevitable test of the 9080-9800 level in that is likely to occur regardless within the next 7-10 days.
Take care and trade safe!!
It's definitely going to be a bull vs bear battle here to try and push through this convergence of resistance. I have a feeling that given we have opened above the 50 EMA, if we close above it on the daily with some stronger volume (volume is lacking at the moment) then we should be able to push through the down trend channel. In this scenario, even if the 200 EMA acts as resistance we might be able to find support on the break out side of the down trend channel, thus confirming it as new support. If this does happen, we should be in a good position to then tackle the 200 EMA and the first line of resistance above that at 9080!
it's worth noting that momentum on the MACD is still trending upwards, but has backed off just a slight little bit. Worst case scenario is if we are rejected at the dotted down trend line, then we simply bounce off support below it at 7858 and then build more momentum to take it and the 50 EMA on again in 'Battle Royale - Round 2'; which in my opinion is simply delaying the inevitable test of the 9080-9800 level in that is likely to occur regardless within the next 7-10 days.
Take care and trade safe!!
