Key Support and Resistance Areas Still Intact
I continue to use the same base chart with the same trend lines as before to evaluate the movement of BTC over the past couple of weeks.
Even though there has been talk of longer term trend lines being broken, as can be seen by the chart, the price continues to move comfortably within the downtrend channel that has been established since the start of March. The thicker yellow line at the top of the chart outlines the trend line established from the all-time high in December. A price close above this trend line will signal a likely successful reversal of the current bearish trend. The price point to watch on the upside for confirmation should be somewhere in the region of $7800-7900 depending on the timing.
On the downside, if the current trend stays in place for longer we will most likely see some sort of significant bounce from the $6000 double bottom. This will serve as a major psychological area of resistance and should see the bulls exert some strength. However, if this bounce his not strong enough to push above the top trend lines, we will likely continue to fall closer to the bottom trend line in the channel.
If the latter scenario plays out, we could finally see a true reversal in the area highlighted by the yellow circle. This means our price area of interest for a reversal could most likely be in the range of $4900-4600.
Daily buying volume remains lower than usual, the last scenario is most likely the one that will play out in some form or another.
Even though there has been talk of longer term trend lines being broken, as can be seen by the chart, the price continues to move comfortably within the downtrend channel that has been established since the start of March. The thicker yellow line at the top of the chart outlines the trend line established from the all-time high in December. A price close above this trend line will signal a likely successful reversal of the current bearish trend. The price point to watch on the upside for confirmation should be somewhere in the region of $7800-7900 depending on the timing.
On the downside, if the current trend stays in place for longer we will most likely see some sort of significant bounce from the $6000 double bottom. This will serve as a major psychological area of resistance and should see the bulls exert some strength. However, if this bounce his not strong enough to push above the top trend lines, we will likely continue to fall closer to the bottom trend line in the channel.
If the latter scenario plays out, we could finally see a true reversal in the area highlighted by the yellow circle. This means our price area of interest for a reversal could most likely be in the range of $4900-4600.
Daily buying volume remains lower than usual, the last scenario is most likely the one that will play out in some form or another.
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