After a continuous downtrend, BTC shows signs of recovery, but according to Kuang Ren, it's very likely for price to go downwards again after current consolidation, feel free to leave your comments below and view the full-version analysis here:
We saw some biding orders aiming to buy at a bottom price after it dipped below $10,000 with expanding volumes on hourly chart yesterday.
Some investors choose to buy at a bottom price because they believe current downtrend may get supported at $10,000.
As a matter of fact, it takes time before a real bottom shows up, which makes buying on dips before price reaches to a new high a significant strategy for long-term investors.
Lack of selling pressure when price moves to the former strong support area formed by $9,800 and $10,000 will lead price into a short-term consolidation period.
Currently, inflection point for price trend has been formed, consolidation is the preview of another wave of downtrend.
As the descending channel on daily chart remains intact, the long-term consolidation will not come to the end until price breaks above the descending trendline effectively.
I’ve been talking about the fact that short-term rally does not mean a reversal in trend since it lacks support from volumes, which makes it very likely for price to go downwards again after current consolidation.
As price dips below MA 5 and shows a tendency to go south from the upper limit of descending channel, operation strategy will be easier and we just need to wait with light positions.
Original by Kuang Ren, translated by AICoin Jami.
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Topic: BTC will go downwards again after current consolidation - page 2. (Read 243 times)
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