A quick look at price areas where BTCUSD has been ranging over the last 9 months or so reveal some interesting findings.
Firstly, there are 3 quite clearly defined areas where the price is ranging from high to low within the range, this can represent some good trading opportunities straight away if you like to trade chop like this - we don't trade this way ourselves, trend following with a tight stop represents much better risk/reward in our humble opinion! (Of course, it depends on MANY more factors than we have time to write about! Personal preference and trading what works for you should always take precedence.)
The second point to make - once price action has broken through any of these S/R levels, it almost always heads off to the next level without much hesitating or waiting around, it will touch the new level and consolidate with the range before making it's next move as it pushes through another level of S/R.
We touched the high-end of the lowest of these 3 range areas yesterday, one of two things is destined to happen - either the price will deflect off the resistance here and trace back to somewhere between $6600 and $7100, or it will shoot through resistance and into the next area highlighted on the chart (between $7900 and $9000).
Seen as the price hasn't deflected off resistance or shown any amount of volatility (in fact, the price has increased by another percent-ish!) we suspect a break-through of resistance and into the next zone.
There's bound to be many levels of accumulated resistance and psychological resistance on it's way up, but with big news approaching (BTC halving), good volume levels and technical indications showing Bullish movements, we're thinking this could go all the way up to $10,000 or $11,000 within a couple of weeks.
Let us know what you think!
-theCrypster
Firstly, there are 3 quite clearly defined areas where the price is ranging from high to low within the range, this can represent some good trading opportunities straight away if you like to trade chop like this - we don't trade this way ourselves, trend following with a tight stop represents much better risk/reward in our humble opinion! (Of course, it depends on MANY more factors than we have time to write about! Personal preference and trading what works for you should always take precedence.)
The second point to make - once price action has broken through any of these S/R levels, it almost always heads off to the next level without much hesitating or waiting around, it will touch the new level and consolidate with the range before making it's next move as it pushes through another level of S/R.
We touched the high-end of the lowest of these 3 range areas yesterday, one of two things is destined to happen - either the price will deflect off the resistance here and trace back to somewhere between $6600 and $7100, or it will shoot through resistance and into the next area highlighted on the chart (between $7900 and $9000).
Seen as the price hasn't deflected off resistance or shown any amount of volatility (in fact, the price has increased by another percent-ish!) we suspect a break-through of resistance and into the next zone.
There's bound to be many levels of accumulated resistance and psychological resistance on it's way up, but with big news approaching (BTC halving), good volume levels and technical indications showing Bullish movements, we're thinking this could go all the way up to $10,000 or $11,000 within a couple of weeks.
Let us know what you think!
-theCrypster