Bitcoin May be Breaking a Multiyear Resistance? 7/26/2020
This is BTCUSD at the weekly view. Bitcoin may be breaking out of its multiyear wedge that it was trapped in for nearly 8 years.
Now, part of this was due to the dollar tanking. However, the on balance volume tells me there is also legit buying.
If Bitcoin decisively breaks above the wedge resistance, it can grow some legs and start running again.
Need to see the backtest being successful.
Banks are allowed to carry BTC now. I think that's the hype. However, if institutions are trading it, then equity trading rules may apply.
That means institutions will try to find the best way to exploit any hype and sell. If I were to grab cash, I would make this into a false breakout as a second attempt to break out. Then pullback to make people give up hope. Then rally this to a true breakout out of the wedge.
That would attract so many momentum chasers. It would be the best way to exploit the situation. I'm not judging institutions from doing that. I would've done the same too.
Now, part of this was due to the dollar tanking. However, the on balance volume tells me there is also legit buying.
If Bitcoin decisively breaks above the wedge resistance, it can grow some legs and start running again.
Need to see the backtest being successful.
Banks are allowed to carry BTC now. I think that's the hype. However, if institutions are trading it, then equity trading rules may apply.
That means institutions will try to find the best way to exploit any hype and sell. If I were to grab cash, I would make this into a false breakout as a second attempt to break out. Then pullback to make people give up hope. Then rally this to a true breakout out of the wedge.
That would attract so many momentum chasers. It would be the best way to exploit the situation. I'm not judging institutions from doing that. I would've done the same too.
Catatan
I realized that I wrote 8 years. I mean since 2018.
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Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.