First Touch of $8500 or Start of Distribution?
Updated
Looking at the past month of uptrend, we've seen big resistance lines broken and retested. It's usually safest to make a decision off the first touch of a known resistance level.
For example, the red circles indicate the initial outbreak of historic levels, and then a short time later, BTC will come back to that level, indicated by the green circles. The next move is where it's best to make a decision. If it holds and begins moving up, it is likely that the uptrend will continue. If it doesn't hold and breaks down, we're looking at the next level down to become resistance again, but a downtrend could be forming.
BTC looks to have bounced nicely off the $8500 level and needs to continue to hold it. I think that second touch of $8500 is where the big boys bought back a little bit before another push up to test ~$9450. First, I believe we need to gain the $8850 level in the very short term. At that point, we would be looking for a first touch of ~$9200. If we fail to hold $8500 or gain $9200, we would be looking at a drop to 8k and hope it holds, but usually a fail to gain indicates a downtrend is on the horizon. If we hover sideways between $8500 and $9200 for another week or two, I think we're in a distribution phase for a few more weeks.
I'm just a small aquatic lizard in this world of whales, throwing my brain out there.
Let me know what y'alls think
ps that stinky tight wedge is probably not a real thing and I'm just drawing things so I think of more possibilities. If it holds that'd be epic though
ps2 this isn't financial advice or a gaming console
For example, the red circles indicate the initial outbreak of historic levels, and then a short time later, BTC will come back to that level, indicated by the green circles. The next move is where it's best to make a decision. If it holds and begins moving up, it is likely that the uptrend will continue. If it doesn't hold and breaks down, we're looking at the next level down to become resistance again, but a downtrend could be forming.
BTC looks to have bounced nicely off the $8500 level and needs to continue to hold it. I think that second touch of $8500 is where the big boys bought back a little bit before another push up to test ~$9450. First, I believe we need to gain the $8850 level in the very short term. At that point, we would be looking for a first touch of ~$9200. If we fail to hold $8500 or gain $9200, we would be looking at a drop to 8k and hope it holds, but usually a fail to gain indicates a downtrend is on the horizon. If we hover sideways between $8500 and $9200 for another week or two, I think we're in a distribution phase for a few more weeks.
I'm just a small aquatic lizard in this world of whales, throwing my brain out there.
Let me know what y'alls think
ps that stinky tight wedge is probably not a real thing and I'm just drawing things so I think of more possibilities. If it holds that'd be epic though
ps2 this isn't financial advice or a gaming console
Comment
since we failed to gain the next level, we're testing the next bigger resistance levels. Looks like a downtrends forming and we're likely to continue testing lower levels.Comment
Looking back on this, the set up I initially had was too fast and slightly too high, $8200 was the stronger level that got the second touch. I could be wrong again and it'll go down more, but I'll be back to reflect and learn when bitty does what it do.Disclaimer
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