BTC must stay above 200 Daily SMA to hold rally.
BTC has finally broken our downtrend channel resistance. Could be a mix of a short squeeze and also Bullish news from China that has caused this rally. Will that be enough to make a reversal from our downtrend channel?
As of right now BTC is holding above 200 Daily SMA(red) which is a good sign but we can't seem to breach our 100 SMA(orange). Even if we break our 100 SMA to the upside, we still face resistance from 10.5k to 9.6k (red rectangle area).
We need 200 SMA to be support and not resistance for this rally to continue.
1 Monthly Chart
If we take a look at our Monthly, it doesn't quite show a downtrend but rather a triangle. We held above our 50 SMA(green) and that's where we made our bottom and prices are holding above our EMA's(yellow/purple). We shall see what next month's candle brings us to have a better idea of where we're going. If we make a bounce here we could go as far as 11-12k to test our pink dotted trendline resistance. But there's a good possibility that if we go for a downtrend that we can revisit the bottom of our pink dotted support line sitting anywhere from 4-5k. But where we go from our current prices, I do not know. Just have to wait for next month's candle
As of right now BTC is holding above 200 Daily SMA(red) which is a good sign but we can't seem to breach our 100 SMA(orange). Even if we break our 100 SMA to the upside, we still face resistance from 10.5k to 9.6k (red rectangle area).
We need 200 SMA to be support and not resistance for this rally to continue.
1 Monthly Chart
If we take a look at our Monthly, it doesn't quite show a downtrend but rather a triangle. We held above our 50 SMA(green) and that's where we made our bottom and prices are holding above our EMA's(yellow/purple). We shall see what next month's candle brings us to have a better idea of where we're going. If we make a bounce here we could go as far as 11-12k to test our pink dotted trendline resistance. But there's a good possibility that if we go for a downtrend that we can revisit the bottom of our pink dotted support line sitting anywhere from 4-5k. But where we go from our current prices, I do not know. Just have to wait for next month's candle
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