Happy Monday Everyone!
I would like to start off the week with a check on the two charts that I've been following on my blog. Let's see if anything significant happened over the weekend.
First, here is the daily chart of BTC/USD:
Continuing from my previous post, we see from the chart that price has broken out from the downward trend, and as of the moment stabilized around the $8,000 level. Over the weekend, price moved and closed above the $8,000 resistance line, a welcome sight indeed for long term holders. However as we see in early Monday trade, most of this has been given up and we are back right at the $8,000 line. Is this merely a retrace back to the $8,000 resistance-turned-support line, or is this be a false breakout and will price tumbling back down? Time will tell.
Also, take note that price is still trading below the 50-EMA line. Although the 50-EMA line has not provided as clear cut a signal on this chart, nevertheless I would be more comfortable leaning towards a more bullish stance if we see a convincing move above the 50-EMA.
Overall, if we do manage to stay above $8,000, the next target would be $10,000 and above that $11,500. However failed up move will bring us back towards the $6,000 - $7,000 range.
Second, here is the daily chart for STEEM/BTC:
Frankly, the red bar with the very long top wick (4th from the right) worries me. This indicates a push had been made above 0.00040 but by the end of the day, much of this advance had been for naught and not only did we give up all our gains, but we even closed lower for the day. The down move did not stop on that day and we continue to see a retracement ongoing even today. At the time of writing, we are now back to the 0.00032 level.
Still notice that I have drawn a preliminary uptrend channel (see the rightmost green channel). For this to be valid in the succeeding days, the price will need to go no lower than 0.00030 and bounce up from there. If however, price retreats back below 0.00030, this may signal the continuation of a sideways range move between 0.00025 and 0.00040.
I'll be back with another chart update in the coming days. Until then, have a great week ahead!
Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.
Chart courtesy of TradingView
