Hello Traders, let's get right into it. We broke above the downward channel that was started about a week and a half ago on strong selling volume. Despite seeing the upper channel line being broken, we resisted buying because the volume wasn't quite where we needed it to be in confirming the reversal. It was simply too risky. Once we saw the buying happen earlier today on stronger volume, it helped confirm the trend. Sure, we lost out on some profit there, but remember this game is all about risk and reward. As long as you're making money and not losing, you're doing well.
Thus, we expect BTC to climb at least until the resistance at the 8500 level. The last resistance is now support, around the 8050 level. This has been hit quite a few times so we expect decently strong support there. We personally have our stop losses set to 7700 to give BTC some leg room here, as we all know the tendency for BTC to move very violently and we don't wish to get knocked out of a potentially good trade.
Continuing that thought, we also know BTC's tendency to blast right through resistances without a second thought, so we will avoid selling at 8500 unless we see the resistance being bumped against at least once. I cannot emphasize enough to set stop losses as this could be a fake rally and you don't want to get caught with your pants down.
Happy trading everyone!
Thus, we expect BTC to climb at least until the resistance at the 8500 level. The last resistance is now support, around the 8050 level. This has been hit quite a few times so we expect decently strong support there. We personally have our stop losses set to 7700 to give BTC some leg room here, as we all know the tendency for BTC to move very violently and we don't wish to get knocked out of a potentially good trade.
Continuing that thought, we also know BTC's tendency to blast right through resistances without a second thought, so we will avoid selling at 8500 unless we see the resistance being bumped against at least once. I cannot emphasize enough to set stop losses as this could be a fake rally and you don't want to get caught with your pants down.
Happy trading everyone!
