Can we break out of the long term down trend?
Updated
Tezos led the market with a pump this week, but can it be sustained? Tezos has been trading in an ascending channel which looks like a classic bear flag.
The price is testing an important level right now, if it can break out of the long term downtrend, $5 is the first target and $5.80 the second.
However, if Tezos can't break out of the downtrend, the bottom of the uptrend will be tested at $3.50. A break below the ascending channel will confirm the bear flag pattern, and could accelerate losses to the bottom trendline at $2.60.
I want to be bullish on Tezos, but unfortunately, I think the price action is going to largely depend on bitcoin. If bitcoin can can break through 42k in the next few days, I think the bullish scenario is more likely; however, if bitcoin drops back below 40k to the 38k levels, I think we will see the bear flag confirmed.
I have exited my Tezos position for now and will wait for more clarity in the market direction.
Not financial advice
The price is testing an important level right now, if it can break out of the long term downtrend, $5 is the first target and $5.80 the second.
However, if Tezos can't break out of the downtrend, the bottom of the uptrend will be tested at $3.50. A break below the ascending channel will confirm the bear flag pattern, and could accelerate losses to the bottom trendline at $2.60.
I want to be bullish on Tezos, but unfortunately, I think the price action is going to largely depend on bitcoin. If bitcoin can can break through 42k in the next few days, I think the bullish scenario is more likely; however, if bitcoin drops back below 40k to the 38k levels, I think we will see the bear flag confirmed.
I have exited my Tezos position for now and will wait for more clarity in the market direction.
Not financial advice
Note
Comment: It looks like the bullish scenario is playing out. On the 4hr chart we have a retest of the trendline and it looks like it is holding as support. Entry at the 0.236 fib ($4.07) is a good place to go long.Not financial advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.