Fan lines are a very basic but very good indicator for identifying trend reversals. A breaking of the third fan line usually indicates trend reversal; if BTC can close above this line over the coming weeks, then outlook will be very bullish.
Note
Overall the trend line played out and we see a bearish reversal in the resistance zone. We did manage one daily candle that closed above, with bulls taking advantage of a short squeeze but BTC was ultimately overbought towards the end of this run and ran out of steam. Will see f a re-test of this zone becomes apparent over the coming week or two, but most likely scenario is down from here.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.