BTCUSDT - Ascending Channel on 1H Chart (Short or Long?)
Hey guys,
Yesterday, I've shared the daily bearish pennant pattern on BTC and today, we saw a drop from the top of the pennant. (And no, it's not solely related to Elon's tweet, the drop started way before he tweeted. He just made things move faster, that's all. Still, hate the man to my guts!)
Anyway, I see an ascending channel have been formed in 1 hour chart of BTC-USDT. Between those yellow trend lines.
General knowledge about asc channels says that if the security's price struggles to reach the top of the channel, there's a higher chance of a breakdown.
Keeping this in mind, I think that green zone will be decisive for the near future of BTC.
Right now, the price is at a support-resistance zone by the time this idea is published, 37300K area. If it breaks, then we'll get to that green zone very quickly I believe, considering this analysis is on 1 hour chart.
At the green zone, we should just watch and wait for a breakout with huge volume to take a good long position or simply wait for a candle close above.
But still, a candle close above that point might not be enough as you should also see how the daily chart turns out after that breakout.
Along with a bunch of other indicators, which are mostly good for long positions, keep an eye on the daily EMA placements after today's daily candle close; 9-21-55-100-200.
If you see 9 and 21 have risen a little bit, that also gives you a good signal for longs.
Also, if 37300K area couldn't break in the next couple of hours until daily close, then I believe 35500K support area will be broken easier than before and we will head down even further, breaking down from the asc channel and road to 23K-26K zone begins, as stated in yesterday's idea.
I personally will try shorting BTC at that green zone with a stop loss at around 41ish area. Cause I believe that zone will be a retest of the breakdown from that purple trend line and top of the bearish pennant.
This is not a financial advisement. DYOR!
Happy trading!
Yesterday, I've shared the daily bearish pennant pattern on BTC and today, we saw a drop from the top of the pennant. (And no, it's not solely related to Elon's tweet, the drop started way before he tweeted. He just made things move faster, that's all. Still, hate the man to my guts!)
Anyway, I see an ascending channel have been formed in 1 hour chart of BTC-USDT. Between those yellow trend lines.
General knowledge about asc channels says that if the security's price struggles to reach the top of the channel, there's a higher chance of a breakdown.
Keeping this in mind, I think that green zone will be decisive for the near future of BTC.
Right now, the price is at a support-resistance zone by the time this idea is published, 37300K area. If it breaks, then we'll get to that green zone very quickly I believe, considering this analysis is on 1 hour chart.
At the green zone, we should just watch and wait for a breakout with huge volume to take a good long position or simply wait for a candle close above.
But still, a candle close above that point might not be enough as you should also see how the daily chart turns out after that breakout.
Along with a bunch of other indicators, which are mostly good for long positions, keep an eye on the daily EMA placements after today's daily candle close; 9-21-55-100-200.
If you see 9 and 21 have risen a little bit, that also gives you a good signal for longs.
Also, if 37300K area couldn't break in the next couple of hours until daily close, then I believe 35500K support area will be broken easier than before and we will head down even further, breaking down from the asc channel and road to 23K-26K zone begins, as stated in yesterday's idea.
I personally will try shorting BTC at that green zone with a stop loss at around 41ish area. Cause I believe that zone will be a retest of the breakdown from that purple trend line and top of the bearish pennant.
This is not a financial advisement. DYOR!
Happy trading!
Trade closed manually:
Break above 35.5K support.
If that plays out, then we won't even see the green zone for a while unfortunately, drop will continue. Let's hope it's not. (: