• @Savdoescrypto

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.

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