I was reading a reddit thread about this 2017 channel. Some comparisons were made to previous channels which BTC eventually broke out of the top. I noticed that on the big dips the lows were getting higher and higher each time, until eventually BTC broke upwards and formed a new channel. Looked like it was being squeezed and wanted room to breathe.
Anyway, it got me thinking that I should not be blindly trading this channel and should start to look for signs of change/progression. To that end, I have draw a line between the previous 2 dips and extended it to show the channel getting squeezed from the bottom. Obviously, any 2 points can make a line, which is why this is just something that I am watching closely and incorporating into a cautious plan.
So, I have extended my buy zone to incorporate this potential support.
This looks like it could be a pretty quick dump, could all be over in a few days or a week.
Good luck!
Anyway, it got me thinking that I should not be blindly trading this channel and should start to look for signs of change/progression. To that end, I have draw a line between the previous 2 dips and extended it to show the channel getting squeezed from the bottom. Obviously, any 2 points can make a line, which is why this is just something that I am watching closely and incorporating into a cautious plan.
So, I have extended my buy zone to incorporate this potential support.
This looks like it could be a pretty quick dump, could all be over in a few days or a week.
Good luck!
Comment:
Bought back in. Missed the big dip to 5.5. I guess it still could go down to the bottom of the channel, but with BCH madness I didn't want to take any more risks. Walked away with roughly $1k per BTC profit. Modest,.. but profit.
