Let’s take a closer look at today’s BTCUSD technical outlook. We analyze a 1-day chart testing two possibilities. The first one is that we are in the bear market enclosed in the channel enclosed by the two green lines.
This is a gloomy scenario for the cryptocurrency market, in which we consider the recent appreciation and spectacular forcing of the $24k resistance just a mere retracement. The bears believing in this scenario would happily sell bitcoins at any price above $24,000, hoping that they will be able to repurchase their assets at a discount, even below $10,000.
What makes this scenario less likely is that the downtrend channel is so steep it would require considering BTCUSD going down as an option. With so many believers worldwide and the growing adoption, this is not likely.
This brings us to the yellow channel. As you can see, this scenario assumes that bitcoin hit the lowest point on June 18, when the price went down to $17,508, and the bulls took over. The uptrend yellow channel is much flatter and narrower than the green one. There’s less place to maneuver, but a slow appreciation of cryptocurrencies may look more probable. The $22,000 support/resistance is the key. Bulls would buy at these levels, and traders could consider cashing in some of their profits below the $30k resistance.
There are a lot of opportunities to profit from the BTCUSD price action, whatever your view is on the crypto market. Trade accordingly to your instinct and knowledge.