How to interpret the price action of entering an ascending channel after a sharp rise? Will it continue to be bullish in the future? There is a more detailed explanation below👇
$BTC As the market continues to change, the interpretation of charts has also been changing. Recently, the structure of the market has become clearer. From the chart, you can clearly see a period of market that is rapidly connecting to a channel. Most of the rising channels will fall. Break, then turn to the starting point of the test channel 📈
Because for bulls, the starting point of the channel is the first retracement after the first rapid rise, and it is also the beginning of the second channel-like rise. Therefore, they will tend to wait to enter the market again at the starting point of the channel, so the starting point of the channel will have a certain supporting effect, and they can wait to go long on the right side of $25745 below.
The chart of $ETH is still within the range, and the range tends to fail to break through. However, as $BTC falls further to test the starting point of the channel, it may also drive $ETH down.
Therefore, the boundary of the range may not be able to support it. It may go down to test the previous low, then form a double bottom and then return to the range. You can pay attention to the price behavior near $1529 to look for long opportunities.
$MATIC After three pushes down, it broke through the downward channel upwards. Unlike BTC, the downward channel tends to break upwards. The same trend is to test the starting point of the channel, which is $0.5895. But there is no way of knowing whether it will rise directly, or whether it will fall back and complete a double bottom before rising. Therefore, the conservative approach is to wait patiently and only go long on the right side after a double bottom occurs, or observe whether there are short selling opportunities above $0.5895.
