BTC/USDT Back in Ascending Parallel Channel
In this idea I will break down the price behavior of BTC/USDT and explain how an ascending channel and a fib retracement are playing an important role.
BTC/USDT was following an ascending channel but just had an attempt to break out of the channel. We have seen strong support again on the 8750 level, an area where the price has traded a lot recently. The price just moved back into the channel, giving this pattern another chance.
When trading an oscillating price between the support and resistance trendlines of an ascending channel, you would want to enter a long position near the bottom of the channel for maximum risk reward.
Since the trend is bullish in such a channel, we can enter the trade with a bullish bias, making it more favorable to long the supports than to short the resistances.
Also, if we look at the fibonacci retracement, we can see that taking the low from 16th of April to the high of 30th of April, the .236 level is very important.
The price has stuck to this line very often, finding resistance or support near this region. This time it was support during the fake out. This gives us more reason to believe a long position now is a safe bet, and that the bulls will protect us if bears suddenly try to push the price down.
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- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
BTC/USDT was following an ascending channel but just had an attempt to break out of the channel. We have seen strong support again on the 8750 level, an area where the price has traded a lot recently. The price just moved back into the channel, giving this pattern another chance.
When trading an oscillating price between the support and resistance trendlines of an ascending channel, you would want to enter a long position near the bottom of the channel for maximum risk reward.
Since the trend is bullish in such a channel, we can enter the trade with a bullish bias, making it more favorable to long the supports than to short the resistances.
Also, if we look at the fibonacci retracement, we can see that taking the low from 16th of April to the high of 30th of April, the .236 level is very important.
The price has stuck to this line very often, finding resistance or support near this region. This time it was support during the fake out. This gives us more reason to believe a long position now is a safe bet, and that the bulls will protect us if bears suddenly try to push the price down.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
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(bắt đầu từ tháng 2 - 2023)
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
This time I am using the RSI indicator to try to predict the next price move of BTC.