Uniswap at Resistance! Is a Drop to $5 Inevitable?

Uniswap is up against the previous channel resistance around $5.50 after falling back down to $4.85. The last attempt to break $5.50 ended in a triple top, this may be a last attempt and with a failure, could lead to another pullback to the bottom of the trend. Bitcoin is currently at risk of a pullback as shown in my 4HR and Weekly analysis. Being a leading indicator, it is another data point in our trade decisions.

How do we trade this?

A short is risky without a sell signal, and a long is risky because we're at resistance. We're also in a bull trend so the probability of profit is less when shorting. Better to wait for more price action before entering a trade.


Key Points

1. Bull Channel, our Mode of operation should be "Always in Long"
2. The price is currently at a Previous Resistance Level
3. Bitcoin as a leading indicator, is at resistance
4. A Pullback to $5 is likely
5. Wait for more price action


You are solely responsible for your trades, trade at your own risk!


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コメント:

The very next bar after this idea was posted was a sell signal! If you shorted, congratulations! Not only did the price fall to the minor trend line at $5.00 but the Bull channel support at $4.85. More updates coming soon!