BTC update - Breaking out on no volume spells trouble

Yes, we broke out of a descending channel after the huge spike down, however we are yet to see any volume in sight:

As I've stated in my previous BTC blog, we broke down hard and was forming a huge exhaustion flag. Just like in bullish movements we need to retest lower and then work our way up after. In this case, we break down and make necessary retracements upwards and then continue down so that shorts can get better prices to enter. This is common in bear markets so don't think this price movement will be the start of the new bull run.

I will say we have a bit of room to head up a little more. I drew a fib from our previous swing high and low and it looks like we will test the 38% retracement which also lines up perfectly at the 200 MA. (blue trend line). This area sits at $6617. We can also head to the 50% retracement area which is also a very common place to hit as well. That sit at $6770. These are great areas to take profit from your long position. I don't think we will head much higher than those areas, especially with the lack of buyers at these levels. Good volume would get you to the 50% fib area and without any volume you may crap out at the 38% fib target line. If you were looking to short, you may want to layer in at those levels to keep yourself in a good spot.

Hope this helps!

Good luck trading all!