BTC lost its downtrend channel, What is next? Is it a bullish sign?
As you can see on the chart, BTC has lost the strong downtrend channel, This channel was directing the price from the $45,000 area to lower lows.
Usually, after the break out of a major channel, A trading range will be created, This happens because Traders are making decisions to specify the future movements in the market.
The upper scenario is happening for BTC right now, According to channel breakout and bulls weakness, I think the price needed some trading range between $40,000 and $36,000 area BEFORE creating a new uptrend or downtrend channel!
At the moment Trading in this range is the correct decision, Sell near resistance and Buy near the support zone.
As you can see on the chart, BTC has lost the strong downtrend channel, This channel was directing the price from the $45,000 area to lower lows.
Usually, after the break out of a major channel, A trading range will be created, This happens because Traders are making decisions to specify the future movements in the market.
The upper scenario is happening for BTC right now, According to channel breakout and bulls weakness, I think the price needed some trading range between $40,000 and $36,000 area BEFORE creating a new uptrend or downtrend channel!
At the moment Trading in this range is the correct decision, Sell near resistance and Buy near the support zone.