BitcoinLong
Resistance becomes support
**BTC/USD** 3/8/18
Trend Line - I’ve mentioned before that I am a trend trader. I look for trends to be established and I ride the trend. Eventually the trend breaks and I hop off the train. We can see what was a major resistance trend has been broken. Although it lacked major volume (conviction), we did see 4 days of buying which is relatively significant. The major rule of thumb “what was resistance becomes support” appears to be the case currently. IF we are to see a strong bull run, we need to see testing of previous resistance lines hold as support to show market conviction.
Fib Lines - These lines are generally focal points in my TA as well. As you can see, some of these lines match up gorgeously. Assuming a 6500 bottom, we can see that the major resistances and supports we are experiencing is currently at the .236 and .382 fib lines. These are common to see in reversals. We had a first top at 11500 (.382), a bounce off 9700 (.236) and then a double top off the .382 bringing us back down to the .236 again. IF this support doesn’t hold I will look for continued support on the short term bearish trend line or the long term bull trend.
RSI - If we can see buying bring the prices back up to a long wick and close out above the 9650 support we would see small slight divergence. For The most part this indicator is showing neutral with a slight lean on the oversold side. I am personally favoring more to a bullish bounce in the next 24-72 hours.
Volume - We are seeing some major volume coming in over the last 2 days. Yesterday had a fair amount of sell off volume. IF this trend/fib support holds with the volume at these levels, it may be a sign of strength that the bears were unable to break support lower.
Overall - The risk to reward for selling at this point is low for my strategy. These are buy-in levels for me. Im looking at more major support coming at $8100 which is about 12% lower than current prices if the down trend support doesn’t hold. I see an upside potential of 26%-42% at next potential resistances. My next take profit zones will likely be 13 15 and 18
Trend Line - I’ve mentioned before that I am a trend trader. I look for trends to be established and I ride the trend. Eventually the trend breaks and I hop off the train. We can see what was a major resistance trend has been broken. Although it lacked major volume (conviction), we did see 4 days of buying which is relatively significant. The major rule of thumb “what was resistance becomes support” appears to be the case currently. IF we are to see a strong bull run, we need to see testing of previous resistance lines hold as support to show market conviction.
Fib Lines - These lines are generally focal points in my TA as well. As you can see, some of these lines match up gorgeously. Assuming a 6500 bottom, we can see that the major resistances and supports we are experiencing is currently at the .236 and .382 fib lines. These are common to see in reversals. We had a first top at 11500 (.382), a bounce off 9700 (.236) and then a double top off the .382 bringing us back down to the .236 again. IF this support doesn’t hold I will look for continued support on the short term bearish trend line or the long term bull trend.
RSI - If we can see buying bring the prices back up to a long wick and close out above the 9650 support we would see small slight divergence. For The most part this indicator is showing neutral with a slight lean on the oversold side. I am personally favoring more to a bullish bounce in the next 24-72 hours.
Volume - We are seeing some major volume coming in over the last 2 days. Yesterday had a fair amount of sell off volume. IF this trend/fib support holds with the volume at these levels, it may be a sign of strength that the bears were unable to break support lower.
Overall - The risk to reward for selling at this point is low for my strategy. These are buy-in levels for me. Im looking at more major support coming at $8100 which is about 12% lower than current prices if the down trend support doesn’t hold. I see an upside potential of 26%-42% at next potential resistances. My next take profit zones will likely be 13 15 and 18
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