Bitcoin Analysis: Daily K Reference
Review: On Monday, Dan mentioned that whether going short or long, one should pay attention to this daily downtrend line. This position represents a confluence of the downtrend line resistance, Fibonacci retracement 0.618 resistance, POC zone, and horizontal resistance. Multiple resistances overlap here.
This area is quite critical; once it breaks and stabilizes, Bitcoin is expected to reach 940. Conversely, if it meets resistance and a short signal appears, one should not hesitate to go short directly. Currently, this wave of shorts has been perfectly capitalized on.
As for the current market, looking at it in terms of a channel pattern, the price around 85400 needs to be monitored for potential long opportunities, as this is the support at the lower edge of the channel.
If a large bearish K directly breaks through the channel pattern, then one should not choose to go long here, but instead look at a lower level support around 835.
One point to note is: the overall larger trend is a downtrend continuation with volatile movements, so any longs are merely rebounds and not reversals. If you profit from a long position, learn to lock in profits and protect your principal. $BTC
