Hello everyone, my intention was to only make one update for today but I saw something interesting on the BTC chart. As you can see BTC is trading in a range, but in that range you can spot a channel.
If you look at the RSI, you can draw the same channel. A support and resistance. The bearish signal we got from the RSI is that it broke the support level of the channel. But it didn't create a lower low.
Now it's good to keep an eye on BTC, because of the RSI that broke the resistance level.
You can also see that in the middel of the range is a dotted line. The dotted line was a reisstance and support level in the past (see the white circles). This can turn into resistance again if the market reacts to it. BTW: the 50 EMA is in the same area as the dotted line so maybe BTC will react to that too.
If the price of BTC manages to break above the 50 EMA and the resistance level, then we could see a retest of the resistance level from the range that it's trading in. Or we can see a retest somewhere around the resistance level of the ascending channel.
If you look at the RSI, you can draw the same channel. A support and resistance. The bearish signal we got from the RSI is that it broke the support level of the channel. But it didn't create a lower low.
Now it's good to keep an eye on BTC, because of the RSI that broke the resistance level.
You can also see that in the middel of the range is a dotted line. The dotted line was a reisstance and support level in the past (see the white circles). This can turn into resistance again if the market reacts to it. BTW: the 50 EMA is in the same area as the dotted line so maybe BTC will react to that too.
If the price of BTC manages to break above the 50 EMA and the resistance level, then we could see a retest of the resistance level from the range that it's trading in. Or we can see a retest somewhere around the resistance level of the ascending channel.