I'm relatively new to the game, so any trading advice I give should be taken as an opportunity for discussion and food for thought rather than as sound financial advice. Furthermore, I'm only 17, so keep that in mind as you read and take everything here with a grain of salt. Trade intelligently and at your own risk.
While studying the charts for BTC over the past couple of days, I started to notice a few trends that caught my eye, and I wanted to share this insight here. As we can see from the first chart, over the past few weeks Bitcoin has consistently remained relatively well confined within these two primary trend lines, with the steeper line acting as a measure of support and the shallower upper line acting as a measure of resistance.
While the chart touches more lightly upon the line of resistance than the support line, the trend is still a strong one, with the price touching the resistance line several times before rebounding, each time slightly less and with slightly weaker volume.
As seen in the chart above, the 15- and 30-period moving averages still remain under the price and have not yet begun to cross. This indicates that the trend is not yet broken, and the price is likely to remain relatively high in the short run. The trend lines allow, and maybe even suggest, a possible push upwards to the support line once more before the predicted decline begins. Volume, while weaker, is still supporting the price, leading me to believe that we can expect a delay before the downturn begins. There are 3 main indicators that one should look for to see the new trend form.
In the order they will likely occur, they are:
I hope you enjoyed this post and appreciated the insight. If you did, please upvote and resteem, and feel free to comment below with any questions or suggestions you have! Happy trading!
