After a big sell-off yesterday BTCUSD found buyers waiting at the $8500 area, halting the slide. A bounce from this area has transpired, but the signals here are very mixed.
The descending blue line is the top boundary of the downtrend over the past few days. The orange lines mark the ascending channel the BTCUSD has been in since the bounce off $8500
Today we saw the price pushed up towards the $9000 area, only to be swiftly knocked back down to $8800. The interesting point about this rejection was that it occurred exactly at the Juncture of the blue line downtrend and the orange upward channel. For this reason it is impossible to tell if the price was constrained by either:
a) The downtrend line, or
b) The upper boundary of the short term ascending channel
Since this is unclear this is pretty much a non-trade zone, however over the next few hours / days one of these will be broken and then it will become clear of which way to go.
A break of the blue line whilst remaining within the orange channel validates the ascending channel (buy)
A price being rejected by the blue line again but knocking it out of the orange channel validates the continued downtrend (sell)
Good luck, happy trading.
The descending blue line is the top boundary of the downtrend over the past few days. The orange lines mark the ascending channel the BTCUSD has been in since the bounce off $8500
Today we saw the price pushed up towards the $9000 area, only to be swiftly knocked back down to $8800. The interesting point about this rejection was that it occurred exactly at the Juncture of the blue line downtrend and the orange upward channel. For this reason it is impossible to tell if the price was constrained by either:
a) The downtrend line, or
b) The upper boundary of the short term ascending channel
Since this is unclear this is pretty much a non-trade zone, however over the next few hours / days one of these will be broken and then it will become clear of which way to go.
A break of the blue line whilst remaining within the orange channel validates the ascending channel (buy)
A price being rejected by the blue line again but knocking it out of the orange channel validates the continued downtrend (sell)
Good luck, happy trading.