Last week’s analysis mentioned that the price of $BTC could be expected to test the starting point of the channel, but in the end it did not touch the starting price, but completed the test with a low point. In most cases, the market will turn to test the extreme value of the channel after testing the starting point of the channel. This is because the trend-following parties will try to continue the trend after entering again at the starting point of the channel, so the price will tend to test the extreme value of the channel.
However, it should be noted that there is no way to know whether the final test will cause the high point to rise, fall, or remain flat. However, if the price approaches the end of the channel and becomes weak, shorting on the right side would be a good choice, so you can wait to short on the right near $27485 above.
For $ETH, it can be seen that the price has reached the extreme value of the channel, but there is still a gap above that has not been fully filled. If the subsequent price continues to rise, you can pay attention to $1726 and $1745.9 above, which are both price ranges with high opportunities for reversal.
In addition, outside of rapid and channel trends, $ETH is still within the range as a whole, and the range tends to fail to break through, so you should pay attention to potential boundaries to capture reversal trading opportunities.
Returning to the chart of $ARB, we can clearly see that $ARB initiated a strong rise, and because the market has an inertial tendency to continue the trend, the measured equidistant price falls at approximately $0.9466.
However, the bulls did not show strong momentum after the rapid rise of $ARB. After the rise, the K-line overlap was very high, and the overall K-line arranged an ascending channel with a relatively stable slope. This means that the market is full of two-way transactions and is not a sign of strong bulls.
Rising channels tend to fall below, because as selling pressure gradually intensifies, bears will eventually take back market dominance and push the price to test the starting point of the channel. However, due to the previous strong rise, we should only pay attention to long opportunities and wait for the price to test the starting point of the channel. Go long on the right side of $0.8763. Whether it can complete the isometric rise in the future depends on the follow-up power of the bulls💪
The first step is to expect the price to rise to $0.9159 to test the extreme value of the channel. If it can break through, pay attention to the horizontal resistance levels above $0.9228 and $0.9279. You can try to find short selling opportunities at the resistance levels, but the risk will be relatively large. Traders can measure it by themselves⛔️
