BULL SCENARIO: So we broke the wedge everyone had there eye on, but there another major trend thats making itself known again. the upward trend line thats played a major role in providing support (we'll call trend B), is now resistance and we just seen it play out. It also happens to fall on the 200 SMA. the current ABC pattern is being played out in the midst of the 200 SMA and 100 SMA. If we see a break of the 200 SMA to the upside, watch trend B and for the bulls sake, hope its no more than an blip on the 3rd leg up. If both the 200SMA AND trend B are broken, the 3/1 Gann angle (which is also the 1% fib extension and previous resistance) will more than likely start off the abc retracement before making its way up to the 4/1 Gann angle, 1.618 Fib extension and previous resistance . From that point, BTC has trend B and the flat 200 SMA for support above the 50% fib retracement. If this does play out, trend B will more than likely be the basis from which the future trend will be structured around.
BEAR SCENARIO: BTC has to break the 200SMA AND the uptrend line to set a new high. If it does not, the downtrend line that formed the previous wedge resistance is possibly the last chance for support..... and a possible bat formation?......I think.....I dont trade animal shapes, so there's that. But I do know that 3 hits on support is a great test of strength, but 4 hits of support and there is an 80% chance of support failure. The bears know this and have their finger on the trigger. If I were a bear here, I would be looking at the 200SMA OR trend B, in conjunction with RSI divergence for entry.
Im bullish and if that 200sma breaks, ill be driving my lambo to moonsville moonasota with a 6 pack of blue moons....... #HODL?
BEAR SCENARIO: BTC has to break the 200SMA AND the uptrend line to set a new high. If it does not, the downtrend line that formed the previous wedge resistance is possibly the last chance for support..... and a possible bat formation?......I think.....I dont trade animal shapes, so there's that. But I do know that 3 hits on support is a great test of strength, but 4 hits of support and there is an 80% chance of support failure. The bears know this and have their finger on the trigger. If I were a bear here, I would be looking at the 200SMA OR trend B, in conjunction with RSI divergence for entry.
Im bullish and if that 200sma breaks, ill be driving my lambo to moonsville moonasota with a 6 pack of blue moons....... #HODL?