An update on the Bitcoin chart analysis, since everyone is so bullish at the moment.BTC has currently formed a nice trading channel. As it might seem at first glance, price action upon resistance level seems to be weak due to low bounces. However, seeing the highlighted candle we see pretty aggressive wick which means that the selling power is still there.
The two most likely scenarios are as presented in the picture (insert might go up down or sideways meme here). To make a decent decision you must observe the volume and order book at current level upon reaching the resistance – possibly on lower timeframes. The most likely scenario for Bitcoin is the bearish one due to the fact that there is low volume. If Bitcoin price accumulates at the resistance that is a no go for short because that shows a weakening of the selling pressure. Otherwise, there is not a reason for being bullish. Bitcoin price made a lower low, and from a FA perspective, a new bull run is very unlikely.
It must be mentioned that trading these ranges can be very profitable. Combining S/R levels with RSI oversold/overbought areas are easy low-risk trades.