Warning: our thoughts are ours; not financial advice.
A careful observation of the bitcoin chart this morning, and we can see that there are three case scenarios for bitcoin at the moment. One must play out in a day or two. Maybe slightly more, but very soon.
Scenario 1: ABCD
Points ABCD is an uptrend channel that started on January 27, 2021. This is the second time we are testing the lower end of the channel in the past six days. If this trend must continue, we must close above that line today.
Scenario 2: BEDF
Points BEDF is a downtrend channel that started on February 21, 2021. If we break the support line of ABCD to the downside, we will be confirming the BEDF downtrend line and we should see bitcoin price continue to decline to the $42K - $41K in the coming days.
Scenario 3: BDE
Points BDE forms a triangle. Breaking out to the upside of this triangle means we are confirming the ABCD uptrend (scenario 1). Breaking out to the downside of this triangle means we are confirming the BEDF downtrend (scenario 2).
How we plan to play this.
If scenario 1 holds true, then we'll be buying a large number of bitcoins at the breakout to the upside.
If scenario 2 holds true, we'll wait for a bounce at the bottom line of the channel and take the trade to the top line of same channel.
If scenario 3 plays out today, we'll just wait for a breakout to the upside or downside, then take our trades accordingly.
Good luck with trading this week.
A careful observation of the bitcoin chart this morning, and we can see that there are three case scenarios for bitcoin at the moment. One must play out in a day or two. Maybe slightly more, but very soon.
Scenario 1: ABCD
Points ABCD is an uptrend channel that started on January 27, 2021. This is the second time we are testing the lower end of the channel in the past six days. If this trend must continue, we must close above that line today.
Scenario 2: BEDF
Points BEDF is a downtrend channel that started on February 21, 2021. If we break the support line of ABCD to the downside, we will be confirming the BEDF downtrend line and we should see bitcoin price continue to decline to the $42K - $41K in the coming days.
Scenario 3: BDE
Points BDE forms a triangle. Breaking out to the upside of this triangle means we are confirming the ABCD uptrend (scenario 1). Breaking out to the downside of this triangle means we are confirming the BEDF downtrend (scenario 2).
How we plan to play this.
If scenario 1 holds true, then we'll be buying a large number of bitcoins at the breakout to the upside.
If scenario 2 holds true, we'll wait for a bounce at the bottom line of the channel and take the trade to the top line of same channel.
If scenario 3 plays out today, we'll just wait for a breakout to the upside or downside, then take our trades accordingly.
Good luck with trading this week.
