Channels 1, 2 and 3 are of equal distance.
Yellow lines are the support and resistance of channels.
Blue line is the resistance on the weekly chart.
Red line is the resistance of the monthly chart.
With that explained let's analyse it:
Bitcoin broke out on the monthly chart in May ( marked by the red line ) pushing by resistance of the weekly and of channel 2 and hit the 10K mark
That was prior to the announced fork that had everyone expecting( at least hoping) for big returns.
That event failed to deliver and Bitcoin retraced into to channel 2 in which it sees itself trading sideways between support on the month( currently at around$8700 ) and Resistance of the weekly and channel 2(around $9600)
It's quite difficult to take a stance on Bitcoin here unless one of the 2 scenarios occur:
1) Bitcoin breaks above the resistance on the weekly and channel 2(marked in green ) , upon confirmation of that breakout one could jup in and perhaps hold it to resistance of channel 3( roughly $13k+)
2) Bitcoin Breaks below the support of the monthly chart tests it again as resistance and a trader could perhaps short it to support of channel 2
Although Is trading sideways, is possible to trade Bitcoin from Support and resistance areas as they are currently yielding 12% returns. Not much by crypto standards , but it can alleviate the boredom for now.
If trading from channel 2( if it does drop ) one must remain rather conservative on their approach as there is a possibility that Bitcoin could trade on channel 1 and could perhaps drop to under $1k.
That however is a chart for another time for when and if it comes to be.
Is also worth to point out the 200MA is direclty under the monthly support, some traders will get stopped just under ( if it does drop ) potentially getting us an quick opportunity for a swing trade.
For now trade with care and have a plan , adjust accordingly and have fun!
R.I.P(Research Invest Prosper)
Yellow lines are the support and resistance of channels.
Blue line is the resistance on the weekly chart.
Red line is the resistance of the monthly chart.
With that explained let's analyse it:
Bitcoin broke out on the monthly chart in May ( marked by the red line ) pushing by resistance of the weekly and of channel 2 and hit the 10K mark
That was prior to the announced fork that had everyone expecting( at least hoping) for big returns.
That event failed to deliver and Bitcoin retraced into to channel 2 in which it sees itself trading sideways between support on the month( currently at around$8700 ) and Resistance of the weekly and channel 2(around $9600)
It's quite difficult to take a stance on Bitcoin here unless one of the 2 scenarios occur:
1) Bitcoin breaks above the resistance on the weekly and channel 2(marked in green ) , upon confirmation of that breakout one could jup in and perhaps hold it to resistance of channel 3( roughly $13k+)
2) Bitcoin Breaks below the support of the monthly chart tests it again as resistance and a trader could perhaps short it to support of channel 2
Although Is trading sideways, is possible to trade Bitcoin from Support and resistance areas as they are currently yielding 12% returns. Not much by crypto standards , but it can alleviate the boredom for now.
If trading from channel 2( if it does drop ) one must remain rather conservative on their approach as there is a possibility that Bitcoin could trade on channel 1 and could perhaps drop to under $1k.
That however is a chart for another time for when and if it comes to be.
Is also worth to point out the 200MA is direclty under the monthly support, some traders will get stopped just under ( if it does drop ) potentially getting us an quick opportunity for a swing trade.
For now trade with care and have a plan , adjust accordingly and have fun!
R.I.P(Research Invest Prosper)