Keeping it Simple-BTC Back to the 7,000's to Test Trendline
Using the logarithmic scale it's clear that BTC broke above the downtrend line back in April (normal charting showed a break above the downtrend back at the beginning of March). Because of this, I'm looking for the right time to take a position in anticipation of a reversal. Currently, BTC looks like it's at the top of a small downtrending channel, making me suspect it will reverse at its current ~8,500 position and temporarily continue the downtrend. A weak MACD on the 1 day chart also supports this. Before scaling into a position, I'm looking for BTC to continue down until it hits the upward line of support drawn on the chart. I believe that looking for a bounce off of that trendline by taking a position in the 7,000-7,400 range offers solid upside. If we break down below that trendline to test or break below the early April lows then I'm anticipating a much longer bear market and that will make me a very sad panda.
There has been solid fundamental news in the market recently regarding the usage of blockchain tech by massive companies, entry into the space by massive institutions and investors, and it's important to remember that the people buying into BTC before we went fully parabolic late last year were people buying into the technology rather than the FOMO and will be stronger hands to help hold the price up. Because of this, I believe that a reversal will eventually happen, but where the price gets held up is not something that can be predicted with certainty, only by looking at likely areas as I believe the area shown is. Other people may use aggressive TA with excessive indicators but you can always find something to give you confirmation bias for what you want to happen, that's why I like to keep it simple
If we break below these levels then I think it's likely that we'll be heading to the 4,000's and that it will take quite a bit longer for the market to turn truly bullish again.
P.S.-Does no one else use the dark theme for their charting? I'm assuming it's because I'm colorblind AF but I hate this light theme.
There has been solid fundamental news in the market recently regarding the usage of blockchain tech by massive companies, entry into the space by massive institutions and investors, and it's important to remember that the people buying into BTC before we went fully parabolic late last year were people buying into the technology rather than the FOMO and will be stronger hands to help hold the price up. Because of this, I believe that a reversal will eventually happen, but where the price gets held up is not something that can be predicted with certainty, only by looking at likely areas as I believe the area shown is. Other people may use aggressive TA with excessive indicators but you can always find something to give you confirmation bias for what you want to happen, that's why I like to keep it simple
If we break below these levels then I think it's likely that we'll be heading to the 4,000's and that it will take quite a bit longer for the market to turn truly bullish again.
P.S.-Does no one else use the dark theme for their charting? I'm assuming it's because I'm colorblind AF but I hate this light theme.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.