BTCUSD-Warning, historical confluence points to troubles ahead!
Hi guys, in my evergrowing conquest to learn the ins and outs of analysis, I've noticed a point of interest in our current movement. For those who are unaware, the start of the monumental 2017 run was in September, at around 2800 bucks. As we all know, this came to an end at 20,000 dollars.
I happened to draw a support line on a whim from the 2800 mark to the most recent leg up we had (July 12th), and have found the past day or two that it's been an excellent sell indicator. Having piqued my interested, I decided to chart a resistance from the ATH to the most recent high (around 8500 dollars). Upon doing so, I couldn't help but be awestruck when I saw that the point of confluence brought us to around 6615, which is DEAD ON to the most recent high we've had on the daily. Beyond this, I'm noticing that we're having an awful lot of trouble breaking the support here, which is scaring the piss out of me truthfully.
Now it's not all gloom and doom, however. We could very possibly have a run that plays out something like we did back into April (blue dotted line):
If this IS the case, then I would be very tempted to load up on alts and crypto in general, at least for a few weeks. However, If I don't see a strong close above this support-gone-resistance, I'm sitting on the sidelines until we head towards the mid to low 5000s.
I really happy for a lot of the people's optimism on this site, but sometimes I feel as if it's a bit ridiculous. Personally, I'm going to be making my entry if we make a solid daily close above that line. Otherwise, I'm patiently waiting to reload my bags.
I happened to draw a support line on a whim from the 2800 mark to the most recent leg up we had (July 12th), and have found the past day or two that it's been an excellent sell indicator. Having piqued my interested, I decided to chart a resistance from the ATH to the most recent high (around 8500 dollars). Upon doing so, I couldn't help but be awestruck when I saw that the point of confluence brought us to around 6615, which is DEAD ON to the most recent high we've had on the daily. Beyond this, I'm noticing that we're having an awful lot of trouble breaking the support here, which is scaring the piss out of me truthfully.
Now it's not all gloom and doom, however. We could very possibly have a run that plays out something like we did back into April (blue dotted line):
If this IS the case, then I would be very tempted to load up on alts and crypto in general, at least for a few weeks. However, If I don't see a strong close above this support-gone-resistance, I'm sitting on the sidelines until we head towards the mid to low 5000s.
I really happy for a lot of the people's optimism on this site, but sometimes I feel as if it's a bit ridiculous. Personally, I'm going to be making my entry if we make a solid daily close above that line. Otherwise, I'm patiently waiting to reload my bags.