Zoom out and look at the alltime chart + volumes. The resistance is meaningless. What people have done for 6 days consecutively now will break it without a problem. The question is how much resistance the broken long-term trendline will pose in the mid 5s.
But I’ll remember your view, thanks for the reminder.
Lets look at some indicators:
+ The volume you mentioned is indeed indicating a declining selling interest. What a rising price needs now however is rising volume with the price going up at the same time to confirm a recovery. Unless the breakout (look my 2 posts up) at around 4.8 $ is not achieved the intermediate recovery could only be called consolidation and is bound to go down further.
+ RSI is positive (but could down further)
+ We have reached pre-rally level (most bubbles I know of ease out around or sligthly above this level)
- EMA 10 and 21 are negative
- Parabolic SAR is negative as well (not in picture)
- overall market sentiment didnt reach capitulation/despondence yet in my perception
- lots of FUD lately, new bad news every day (FINCen, bitcoinica legal complaint,..)
- in order to generate a positive indicator the "cup & handle" chart pattern visible in every 5 day intervall needs to close above 4.9$, otherwise a further drop is likely
+- What are Manipulators doing? Not much activity lately --> A impending major move becomes more and more likely the more we progress in time
In conclusion, I am more bearish rigth now. Everything depends on a breakthrough 4.8$ (4.9$) to confirm or reverse these indicators.
Thanks for sharing your views
