Bitcoin Broke - Now retesting. $18,700 Must Hold!
After a #breakout to the topside of our year long #descendingwedge, #bitcoin now looks to retest previous #resistance
After a year of living inside the #bullish descending wedge (below), we have finally broken out to the topside! This is bullish!
However, we are not out of the woods yet. Today we wait patiently and watch closely. You can observe from the zoomed in portion of the chart below that we are currently above our support zone which was previous resistance. Though we may fall back into that support zone area, the critical support level that MUST HOLD is that BLUE line at $18,700. We have not dropped below that line with a confirmation candle on the daily this year! So, it’s that important! Should we drop below that line and confirm on the daily, this bull movement becomes a great big old bull trap. But, I will add, a breakout of a year long descending wedge like we have just done makes it unlikely that we’ll drop below that level. Where we end today’s price is extremely important! Where we close tomorrow? Also important. We must remain above $18,700 this week and we must remain above the bottom line in that support zone. If we can do that, I think we are finally at a safe point to begin either dollar cost averaging in or, if you are a trader like me, we can slowly begin to take on more longs.
Best on all your trades!