Bitcoin started travelling on a downward channel on May 6th and despite a healthy rebound from 5750 remains in that downward channel. We don't see a good buying opportunity from this level. Over the next 3 days BTC will have opportunity to break out of this channel.
There are two scenarios. If it can surpass the heavy resistance from 6400-6600 we are prepared to follow that breakout with targets of 7200 - 7400. If it can't breakthrough then the bears have strong control over the market, and we can expect lower lows in the 5000-5400 range.
We see two buying opportunities:
1. The first is on the retest of the upwards channel support line 5900-6050. This is a risky entry point but that risk could be mitigated by taking partial profit at 6250.
2. Wait for a clear breakout of the 6400-6600 zone.
We will be buying on retest of the support with a very small amount of capital, and reinforcing that position after BTC breaks through the 6400-6600 resistance.
There are two scenarios. If it can surpass the heavy resistance from 6400-6600 we are prepared to follow that breakout with targets of 7200 - 7400. If it can't breakthrough then the bears have strong control over the market, and we can expect lower lows in the 5000-5400 range.
We see two buying opportunities:
1. The first is on the retest of the upwards channel support line 5900-6050. This is a risky entry point but that risk could be mitigated by taking partial profit at 6250.
2. Wait for a clear breakout of the 6400-6600 zone.
We will be buying on retest of the support with a very small amount of capital, and reinforcing that position after BTC breaks through the 6400-6600 resistance.