BTC/USD Breaks Two Month Downward Trending Channel
BTC/USD was well bid today after showing signs its two-month downward trajectory is coming to an end.
Swing traders will note the sustained tight consolidation under the upper band of the two-month downward trending channel, adding weight to a retest of prior swing highs at $10,400.
Bulls may also take confidence from a coinciding breakout in the 14-day RSI and a move back above the key bull market support level of ~50.
Bullish traders might enter long after this breakout, setting bids at ~$9,200 in anticipation of the pink upper band of the two-month downward trending channel becoming a level of support.
The orange zone between $9,800 and $10,500 remains established as a heavy level of resistance. Bears might be eager shorters of a retest of this zone with stop loss congestion likely building above $10,500.
Traders may expect a flurry of short cover and a coinciding migration of positions from altcoins to BTC should a breakout of the $10,500 resistance level eventuate.
As always, stay safe and connect with me on twitter at @savdoescrypto.
BTSE regularly hosts the technical analysis of experienced BTSE traders. Please note that we neither endorse any analyses published nor give you financial advice. Please make any trading decisions based on your own research.
Our aim is to create a platform that offers you the most enjoyable trading experience. If you have questions or suggestions, please don’t hesitate to reach out to us at email@example.com or DM us on Twitter: @BTSEcom.