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When looking at the chart below we can see that Bitcoin(BTC)trade is currently trading at $8,168. Although an uptrend is supposedly seen, when looking closely we can recognize that the price is still between the channels and has failed to break the resistance of $8,255.
So it is suggested not to take long positions at this price as it is currently around the resistance level. It is expected that the price will be traded between the channels for some time. The current resistance is at $8,255 and support is at $7,917.
According to Dow Theory, the cryptocurrency’s price is in the accumulation phase. It is a period when investors are actively buying against the general opinion of the crypto market.
During this phase, the price does not change much because these investors are in the minority, demanding to buy quantities that the market at large is supplying. This phase is followed by the participation phase.
The BTC price is moving between the channels with the lower channel limit acting as support and the middle average line was previously acting as resistance but then it was broken; now, the upper limit is acting as resistance.
It can be seen that the channel is expanding with a positive momentum. It indicates increased volatility with positive sentiments, so it is suggested to wait until the price crosses above the upper limit before taking a long position.
Although a bearish crossover is seen when taking 9 period moving averages (blue) with 21 period moving averages (red), the price is still trading above the 9 and 21 period moving averages. Risk takers can take a long position as long as the price is above the 9 period moving average.
When looking at all the charts, we can see that Bitcoin(BTC)trade is currently trading at $8,168, the current resistance is at $8,255 and support is at $7,917. The Bitcoin price is currently around its resistance so it is suggested not to take long position at this price.
Long positions should be take after the price breaks the resistance or touches the support. Swing trading can be done using the above mentioned levels. A day close at $8,255 can take price to $8,477 and then $9,169. A day close below $7,917 can drag the price down to $7,717 and even further down to $7,420. The overall mid term trend looks bullish.