Decred versus Bitcoin - Reversal Pattern
Decred found the support at btc 0.0033, where it rejected the 527.2% Fibonacci retracement level applied to the corrective wave after the uptrend trendline breakout.
Following the support rejection, DEC/BTC started to move higher and broke above the downtrend trendline and 200 Moving Average suggesting the reversal of the trend.
A double bullish divergence was formed fist when it bounced off the support and second when it bounced off the downtrend trendline on a corrective wave down. So far all the facts are in favour of the potential trend reversal where Decred should start moving higher against Bitcoin.
The very strong resistance is seen at btc 0.0085 where two Fibonacci retracement levels are crossing as well as it corresponds with the upper trendline of the descending channel. Only a daily close below btc 0.0033 should invalidate this outlook.
Following the support rejection, DEC/BTC started to move higher and broke above the downtrend trendline and 200 Moving Average suggesting the reversal of the trend.
A double bullish divergence was formed fist when it bounced off the support and second when it bounced off the downtrend trendline on a corrective wave down. So far all the facts are in favour of the potential trend reversal where Decred should start moving higher against Bitcoin.
The very strong resistance is seen at btc 0.0085 where two Fibonacci retracement levels are crossing as well as it corresponds with the upper trendline of the descending channel. Only a daily close below btc 0.0033 should invalidate this outlook.
Comment:
Stop loss at breakeven, 0 risk trade
Trade active:
Trade could potentialy be re-entered as there was a bounce off the support
Trade closed: target reached:
closed at 0.007