So BTC price has just broken the downtrend channel (dark red dashed line) which has proved to be the heaviest resistance area since the crash. This is THE best bullish sign so far since the crash. If we keep above the channel, we could confidently say we have completed wave 2 of the final wave (5) and have entered wave 3. From here, I would like to see the price break the middle orange dashed channel line and towards the top of wave (5)’s channel line (black dashed line). We want to keep on the right side of the 200 EMA which is a great bullish sign. I have started my trade with 2/3 of my total position @ $10,750 and will add on the remaining 1/3 after further confirmation. Preferably a break of the middle orange channel. My target for this trade is $12,600 (17.19%).
If the support here cannot be held then it wouldn’t look good for the bulls. Bearish pressure could push the price to the start of wave 1 which would then could be a turning point. Therefore I would place my stop at $10,200 (5.13%).
Confidence Rating: 8/10