Can we break out of the long term down trend?

6 thg 2, 2022

Tezos led the market with a pump this week, but can it be sustained? Tezos has been trading in an ascending channel which looks like a classic bear flag.

The price is testing an important level right now, if it can break out of the long term downtrend, $5 is the first target and $5.80 the second.

However, if Tezos can't break out of the downtrend, the bottom of the uptrend will be tested at $3.50. A break below the ascending channel will confirm the bear flag pattern, and could accelerate losses to the bottom trendline at $2.60.

I want to be bullish on Tezos, but unfortunately, I think the price action is going to largely depend on bitcoin. If bitcoin can can break through 42k in the next few days, I think the bullish scenario is more likely; however, if bitcoin drops back below 40k to the 38k levels, I think we will see the bear flag confirmed.

I have exited my Tezos position for now and will wait for more clarity in the market direction.

Not financial advice

7 thg 2, 2022

Ghi chú

Comment: It looks like the bullish scenario is playing out. On the 4hr chart we have a retest of the trendline and it looks like it is holding as support. Entry at the 0.236 fib ($4.07) is a good place to go long.

Not financial advice