*Education purposes only, not an investment advice*
While most of the analysts analyzing BTC -4.13% using the relative shorter-period charts such as 1H or 4H, let's look at the daily chart using simple yet one of the most powerful tool in TA, trend lines .
Looking at the daily chart , it is clear that BTC -4.13% failed to end the downtrend channel by retracting from $11,750. This level was significant since it would have busted the downtrend line and an entry level of the "smart money".
Now let's look at the upward trend line , this line has been violated by BTC -4.13% and it's poised to further downsides until it breaches this line.
Although I am not yet convinced that price will go lower than the previous low of $6,000 yet it remains a possibility until BTC -4.13% finds a stronger support level .
The markets are about investors psychology. The psychology became very positive when BTC -4.13% hit and rebounded from $6,000. I will be worried if it goes lower than $8,000. However, it would not take much further downside for people's psychology to turn negative and they start running away.
There are some levels which have huge significance. A failure or success at that level (such as $11,750) has massive reaction to it. The price could fall like an anchor or go to the moon from that point.
At this time, let's sit back and watch.
While most of the analysts analyzing BTC -4.13% using the relative shorter-period charts such as 1H or 4H, let's look at the daily chart using simple yet one of the most powerful tool in TA, trend lines .
Looking at the daily chart , it is clear that BTC -4.13% failed to end the downtrend channel by retracting from $11,750. This level was significant since it would have busted the downtrend line and an entry level of the "smart money".
Now let's look at the upward trend line , this line has been violated by BTC -4.13% and it's poised to further downsides until it breaches this line.
Although I am not yet convinced that price will go lower than the previous low of $6,000 yet it remains a possibility until BTC -4.13% finds a stronger support level .
The markets are about investors psychology. The psychology became very positive when BTC -4.13% hit and rebounded from $6,000. I will be worried if it goes lower than $8,000. However, it would not take much further downside for people's psychology to turn negative and they start running away.
There are some levels which have huge significance. A failure or success at that level (such as $11,750) has massive reaction to it. The price could fall like an anchor or go to the moon from that point.
At this time, let's sit back and watch.