the bull trendline (log) from 2020 has once again held strong, and a new local low ($2650) gives us some insight as to where we can expect margin buying pressure to taper off. why do i care about that? because it's one of the best ways to predict resistance levels and local tops! and local lows that occur at or near the trendline (or the bottom of a channel) are particularly good for this sort of analysis.
we're currently entering the first (and probably the toughest) test in the $3.3k-3.5k resistance zone. aside from the recent history of resistance at this level, there's a ton of margin pressure implications, both long and short:
(1) 2x long pressure dies down (from prior support of $1725)
(2) 4x & 5x short pressure increase (from ATH resistance)
(3) 4x & 5x long pressure decrease (from new support of $2650)
next i'm expecting resistance at the local high of $4k, which coincides with a drop off in 3x long pressure.
then comes the requisite ATH resistance at $4380.
if price manages to make a new ATH, i think it will be smooth sailing to $5.3k which is our 2x long level from the new support.
we're currently entering the first (and probably the toughest) test in the $3.3k-3.5k resistance zone. aside from the recent history of resistance at this level, there's a ton of margin pressure implications, both long and short:
(1) 2x long pressure dies down (from prior support of $1725)
(2) 4x & 5x short pressure increase (from ATH resistance)
(3) 4x & 5x long pressure decrease (from new support of $2650)
next i'm expecting resistance at the local high of $4k, which coincides with a drop off in 3x long pressure.
then comes the requisite ATH resistance at $4380.
if price manages to make a new ATH, i think it will be smooth sailing to $5.3k which is our 2x long level from the new support.
Kommentera:
almost there. don't forget to take profits.
