BICO final analysis: What's the future of BICO?Hello, traders!
I've posted a lot about BICO lately, and this will be my final remark for this cryptocurrency.
BICO is about a year old, its ATH was 0.9877 USDT on April 1st when it continued to decline ever since.
BICO's average daily volume was very low for last few months, being approx. 5M USDT.
However the volume from October 30th to November 4th (yesterday) was 456M in total. This is average volume of 76M a day.
With this exceptional rise of volume, BICO is attempting to escape months old resistance line of the downtrend.
Looking at the 1H chart, we see more details of the current movement: the crypto had two breakouts, both failing to sustain above the resistance line. This tells us that the sellers are still in charge - despite the promising volume spike, price failed to remain above the line longer than 24 hours, not once but twice.
BICO's selling pressure still being high, there are two scenarios we can expect:
1. BICO remaining in consolidation for another breakout attempt. If current attempts are fueled with upcoming US election (and interest rate announcement), it might succeed in its third attempt. If this is the case, I will wait for the third breakout, confirm the uptrend with (1) rebound at the resistance line and (2) break of structure at 0.2529. Normally, I don't put much hope for any crypto or stock that shoots for the third attempt, but I'll give it a try since the US election is just about to happen.
2. BICO continuing the downtrend after two failed attempts. You will see a orange line in the chart at price of 0.2106. This price has acted as a key support level for past few days. If you go further back in the past, you will also notice this price had numerous occasions of price action. The level has acted as a solid support after the first breakout. You can see two strong rebounds as the price reached this level. It is still working as a support after the second breakout, though it is a lot weaker.
If the price drops below the level, I think the third breakout is far less likely to happen. I'm not going to say it is impossible (considering the election) but I'd lean towards the SHORT opportunities more. If the price drops below 0.2, I think that's a valid sign for a continued downtrend.
Let's see how it turns out!
