After the failed breakout of BTC a couple of days back, it was natural it would go back down (mostly due to the high RSI). I anticipated a bounce somewhere in the $9.5-10k zone, which was confirmed (dotted arrows), altough it didn't make it as far up as I had guessed. Instead it kept a low profile in the bottom or right below my support zone.
And now, in the light of the Circle announcement we see a breakout once more, ao I'd like to share my thoughts.
First of all I see a resistance around $11k. It's the 0.382 fib, but it's also a previous resistance. I don't think this will be a tough one to break through, so it wouldn't be surprised to see the current momentum break it. In that case, the next resistance seems to be around the previous $12k resistance, which was the moment before the recent drop. I'd say the RSI indicates some room upwards before being above 70, but that means it won't have enough fuel to go through $12k.
In that scenario, I hope to see BTC break through the $11k resistance and confirm it as a support. That would give us the first resistance outside of the bear channel, and would be a really good bullish signal! Enough to make me enter the market again with 25% of my holdings. My hope is to see BTC recover nice and steady, and that means two steps forward and one step back. One step forward is always a step in the right direction, so let's hope BTC keeps on walking! :)
And now, in the light of the Circle announcement we see a breakout once more, ao I'd like to share my thoughts.
First of all I see a resistance around $11k. It's the 0.382 fib, but it's also a previous resistance. I don't think this will be a tough one to break through, so it wouldn't be surprised to see the current momentum break it. In that case, the next resistance seems to be around the previous $12k resistance, which was the moment before the recent drop. I'd say the RSI indicates some room upwards before being above 70, but that means it won't have enough fuel to go through $12k.
In that scenario, I hope to see BTC break through the $11k resistance and confirm it as a support. That would give us the first resistance outside of the bear channel, and would be a really good bullish signal! Enough to make me enter the market again with 25% of my holdings. My hope is to see BTC recover nice and steady, and that means two steps forward and one step back. One step forward is always a step in the right direction, so let's hope BTC keeps on walking! :)
Comment:
Just a quick comment: It seems the $11k resistance held for now, but I doubt we'll stay under it for long. If we reenter the bear channel I'd say we still have support in the $9.5-10k area.