Prudent investors observing BTCUSDT will note the blue box I have highlighted on the chart. It represents a particular juncture where, should market action decisively penetrate this upper boundary, we might witness a rather substantial appreciation in price.
Retracement will be lower but I think risk reward is very good.
Now, the intelligent investor does not engage in speculation based merely on lines drawn on a chart. However, such zones can serve as important indicators of potential shifts in market sentiment and buying pressure. A breakout above this defined area, accompanied by what one might term 'significant volume' a confirmation of genuine interest and not mere fleeting enthusiasm would suggest a possible continuation of an upward trend.
It is crucial, of course, to await confirmation. A breach of this resistance level that is not sustained, a 'false breakout' as some call it, can be a trap for the unwary. Therefore, diligent observation of subsequent price action, particularly on shorter timeframes, is warranted. A successful retest of the broken resistance as a new level of support would lend further credence to the bullish thesis.
One should also consider the underlying fundamentals, to the extent that such a nascent asset class allows. However, in the realm of technical analysis, these zones of potential breakout offer a visual representation of where supply may be overcome by demand.
Therefore, should BTCUSDT indeed break through this blue box with conviction, it would suggest a potential for a robust upward movement. But remember, the intelligent approach is one of caution and confirmation, not impulsive action. We observe, we analyze, and we act only when the evidence supports a calculated move.
Retracement will be lower but I think risk reward is very good.
Now, the intelligent investor does not engage in speculation based merely on lines drawn on a chart. However, such zones can serve as important indicators of potential shifts in market sentiment and buying pressure. A breakout above this defined area, accompanied by what one might term 'significant volume' a confirmation of genuine interest and not mere fleeting enthusiasm would suggest a possible continuation of an upward trend.
It is crucial, of course, to await confirmation. A breach of this resistance level that is not sustained, a 'false breakout' as some call it, can be a trap for the unwary. Therefore, diligent observation of subsequent price action, particularly on shorter timeframes, is warranted. A successful retest of the broken resistance as a new level of support would lend further credence to the bullish thesis.
One should also consider the underlying fundamentals, to the extent that such a nascent asset class allows. However, in the realm of technical analysis, these zones of potential breakout offer a visual representation of where supply may be overcome by demand.
Therefore, should BTCUSDT indeed break through this blue box with conviction, it would suggest a potential for a robust upward movement. But remember, the intelligent approach is one of caution and confirmation, not impulsive action. We observe, we analyze, and we act only when the evidence supports a calculated move.
Trade active
We lost the blue box :(
Professional Day Trader
Microstructure Practicioner
t.me/umuttrades
kick.com/umuttrades live everyday.
Microstructure Practicioner
t.me/umuttrades
kick.com/umuttrades live everyday.
Related publications
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.
Professional Day Trader
Microstructure Practicioner
t.me/umuttrades
kick.com/umuttrades live everyday.
Microstructure Practicioner
t.me/umuttrades
kick.com/umuttrades live everyday.
Related publications
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.