ADXBTC - Kumo E2E and Upcoming Resistance Levels
During BTC's bull run, ADXBTC breached a long-term support and price suffered as a result.
Since then, it has steadily been building an uptrend support and recently had a strong move up into the Kumo Cloud.
There are at least two possible scenarios here.
1) The close inside the Kumo is actually a bull trap and ADXBTC will bleed back down towards the support trendline at the bottom of the chart.
2) The Kumo edge-to-edge is valid.
If (2) is true, there are two further things to look for.
2a) Price breaching the blue box. This is a key level because if price can trade above the box, it would signify a break above a key support level (now resistance) and also a Kumo breakout.
2b) Price testing the longer-term diagonal downtrend line. The rocket icon is there for a reason. Namely, if price is able to breach and trade above the downtrend line, I would expect significantly more upside and a 'real' trend reversal.
Since then, it has steadily been building an uptrend support and recently had a strong move up into the Kumo Cloud.
There are at least two possible scenarios here.
1) The close inside the Kumo is actually a bull trap and ADXBTC will bleed back down towards the support trendline at the bottom of the chart.
2) The Kumo edge-to-edge is valid.
If (2) is true, there are two further things to look for.
2a) Price breaching the blue box. This is a key level because if price can trade above the box, it would signify a break above a key support level (now resistance) and also a Kumo breakout.
2b) Price testing the longer-term diagonal downtrend line. The rocket icon is there for a reason. Namely, if price is able to breach and trade above the downtrend line, I would expect significantly more upside and a 'real' trend reversal.
Comment:
Played out beautifully.