BTCUSD
is showing signs of weakness as it has recently rejected off the descending trend line. While price does remain inside a rising channel; we can currently see RSI has broken below it’s trend line. Volume is very low though; so this rejection strikes more to be a limitation of demand rather than a sustained push by market bears. In fact, a rather lot of nothing is happening right now…
PRICE ACTION
- Price actions is coming off a parabolic downward movement. We are targeting the 0.8 retrace on the long play.
- Next entry is along the green line @ $7050; but entries along the lower white bound of the channel should be taken as the time period increases
- Stop Loss is about 5% below the channel; giving plenty of room for volatility
VOLUME
The 100 candle MA is turning upwards; supporting the assumption that volatility is entering the markets. Majority of the recent above average candles have been on green movements; supporting the bullish case. Demand on either side of the market just doesn’t exist right now.
RELATIVE STRENGTH
The downward movement showed a bullish divergence on Nov-22 and Nov-25; which has allowed for the development of a rising channel. Although RSI has broken the rising trend; 30.0 has a history of recovery so should be watched with intent.
KEY PRICE AREAS
Resistance: 7400, 7600, 7800
Support: 7050, 6800, 6500
PREVIOUS UPDATES
Comment:
There is a price confluence on the following targets:
- 80% retrace of the downward parabolic movement
- Upside target of a diamond bottom breakout
Both these have a price target of $9000; which is also a known key horizontal zone.
The rising channel remains valid; however we are yet to see a close above the downward resistance. The upside is not not worth the risk until a breakout occurs.
There is a price confluence on the following targets:
- 80% retrace of the downward parabolic movement
- Upside target of a diamond bottom breakout
Both these have a price target of $9000; which is also a known key horizontal zone.
The rising channel remains valid; however we are yet to see a close above the downward resistance. The upside is not not worth the risk until a breakout occurs.
Over the last 24 hours we have seen the price spike and attempt to break through the descending resistance. Volume is picking up; and the rising channel still remains in place.