I just wrote a bearish capture outlining what happens if we stay in the descending channel we had been bound to since we broke out of our 7 week ascending channel that started at the beginning of the year. Well not more than an hour or two later that channel was broken, BTC broke up and then came back down and appears to have converted the top of that channel into support.
I write this as follow up but in general as channel and trends break, as we see a divergence, we know a further reversal to some extent is likely. So if you see a channel and you see it break, be vigilant and assess the factors of the break such as if it was up or down, did it come back down and convert the previous resistance into support, has it already passed multiple resistance lines, has it broke out further than previous breaks in the trend, etc.
I just converted from short to long on my leveraged trades but I suspect this just bounces us back into the descending channel we had already started ("Why not this descending channel") which would have us slow trend down until around May.
The COV19 has devastated stock markets, its impact to crypto overall is yet to be seen, will it rise like gold or be impacted by developer shortages, something like this could have unforeseen impacts that invalidates a lot of short and medium term patterns. In the case of the S&P, even the 10 year bull trend has been broken.
Here is what I am seeing as our greatest short term hurdles if we in fact do head back up.
$9100ish, bottom of previously developing descending channel,
$9500, Strong Horizontal historic resistance/support
$9700ish, top of previously developing descending channel.
This is a break out but could just be a break out to a slightly higher and slower descending pattern. So far there is still a really good chance we touch the 5 year trend-line before we go over the highs we established in January.
Do your own research, be tentative to charts when you have money in the markets, be prepared to act on channel and trend line breaks, good luck.
s
I write this as follow up but in general as channel and trends break, as we see a divergence, we know a further reversal to some extent is likely. So if you see a channel and you see it break, be vigilant and assess the factors of the break such as if it was up or down, did it come back down and convert the previous resistance into support, has it already passed multiple resistance lines, has it broke out further than previous breaks in the trend, etc.
I just converted from short to long on my leveraged trades but I suspect this just bounces us back into the descending channel we had already started ("Why not this descending channel") which would have us slow trend down until around May.
The COV19 has devastated stock markets, its impact to crypto overall is yet to be seen, will it rise like gold or be impacted by developer shortages, something like this could have unforeseen impacts that invalidates a lot of short and medium term patterns. In the case of the S&P, even the 10 year bull trend has been broken.
Here is what I am seeing as our greatest short term hurdles if we in fact do head back up.
$9100ish, bottom of previously developing descending channel,
$9500, Strong Horizontal historic resistance/support
$9700ish, top of previously developing descending channel.
This is a break out but could just be a break out to a slightly higher and slower descending pattern. So far there is still a really good chance we touch the 5 year trend-line before we go over the highs we established in January.
Do your own research, be tentative to charts when you have money in the markets, be prepared to act on channel and trend line breaks, good luck.
s