$BTC Here is the complete and unbiased view on Bitcoin BTCUSD weekly
The horizontal support/resistance levels in technical analysis are the most important signal in my opinion
Breakouts or breakdowns of these key levels can lead to profitable trades with minimal risk
Bullish interpretation: Bitcoin is again close to all-time highs and possibly consolidating at resistance. Consolidation at or just below resistance is often bullish
Neutral interpretation: If a trading range is being established, there is a better risk:reward in short selling at resistance
Bearish interpretation: A doji at resistance could be a sign that momentum is waning and a reversal could follow
How I am trading this (this is not financial advice - trade at your own risk):
I am short selling in the red box with a stop loss order above the all-time highs
A buy order is placed in the green box above the all-time highs that will trigger a long position once reached
If it’s a valid, confirmed, and sustainable breakout, it should take my long position much higher
If we reverse, I am short
If we return to the bottom of the range, or even to the median of the range, I will reevaluate, possibly take some profits, consider new long positions, etc. depending on market conditions
A valid breakout above the all-time highs should be accompanied by strong trading volume, RSI above 70, and a move above the upper Bollinger Band on the weekly
Other observations:
The stock market and altcoins that look strong increase the probability of a bullish outcome
BTC CME futures have failed to exceed 70 on the daily RSI on two consecutive occasions now and volume is decreasing - there are possible non-confirmations
Overall, these remain very mixed conditions and are starting to tilt more towards bullish