This is a very important trend to keep an eye on for the remainder of the bull cycle we are in.
This gives us an indication on the momentum the market is currently moving in.
To continue the road map to a $100K Bitcoin , we want to keep this momentum.
The aim is to buy the tests on this trend line, and add to your positions.
This line will also alert us anytime the market is losing momentum and can give us a early signal that bears are coming into control.
2. Resistance trend line
We use this to indicate BTC break outs; it is normal for price to test support at any point.
To confirm the temporary bottoms are in, we use a break of resistance to confirm that.
Break of resistance means bulls are taking control again, and are fighting for momentum to the upside.
These are also great buy signals.
We buy on supports and add to positions on resistance break outs.
This is a very important indicator.
Whenever there is movement in the market, you want to see if volume is backing the move.
An increase in volume when price touches the support line, shows that bigger people are buying here, making it a valid support.
Same with a resistance break, you want volume to back the momentum.
As you can see, BTC had retraced the last two weeks, but there is no volume backing the move, which makes it a temporary healthy correction, and shows bulls are in control.
When BTC breaks resistance, we could see some massive volume coming in, sending BTC to an all-time high break and on its way to $100K; volume comes on break outs.
Our technicals are showing that a $100K BTC can be hit by the end of Q4 2021 to Q1 of 2022.
5. This is the previous all-time high
Right now the retail traders are scared to enter the market, which is great for us.
We always want to be buying with the big guys. Retail buyers have the habit of coming late in the market and usually come when coins break all-time highs and are moving very aggressively.
I see gradual growth for BTC until all-time highs, then a massive increase on volume as retail buyers come back into the market.
This will give BTC the momentum to get to the $100K+ levels.