Bitcoin: The Key Trend Lines for The Market You Must Know
Bitcoin / TetherUS BINANCE:BTCUSDT
Let’s look at the bigger picture. For this, I offer to use the weekly timeframe and the downtrend line from the monthly chart.
When the price broke the local downtrend line, it gave us a buy signal in the direction of the main uptrend. The market moved upward, and we still have this impulse wave. It is still active. Based on the weekly chart, this wave keeps the potential to move higher. MACD supports upward movement. RSI does not reach the overbought zone. DMI is bullish , and ADX line moves upward. It tells us that buyers are active and have power.
We have bullish signals in the weekly chart confirming the further upward movement.
It will be logical if the price reaches the monthly downtrend line. It is the key trend line for bears. It is a good target for buyers who prefer to trade in the long term. This downtrend line can become a zone where the profit from long positions will be fixed. It will give us the price reversal and the correction wave. I remind you, we talk about the weekly timeframe , and lower timeframes can have different market conditions and trade opportunities.
What should we know from the weekly chart?
The market has the key downtrend line for sellers, and the price is going to reach it. We will have the resistance zone formed by 11000.00 round number level and this downtrend line. It will be logical if the price bounces from this zone and moves downward. The main uptrend line for the bulls will be the target for sellers. The perfect zone for buying will be at the uptrend line.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov