WanChain vs Bitcoin Upcoming Reversal Potential

Since June,WanChain has been trending downwards within the descending channel. It has lost over 64% to Bitcoin in less than two months. Although today price has bounced off the 227.2% Fibonacci retracement level at 2350 satoshis.

The support has been rejected cleanly suggesting that WAN/BTC could have reached the bottom or very close to it. At the same time the middle trendline of the descending channel has been rejected.

Indeed, this could be the turning point for the WanChain, although far to early to state about that with confidence. The downside momentum is still strong and WAN could fall slighly lower, towards 2130 satoshis before moving up. But only break and close below 2130 level would invalidate bullish scenario.

On the other hand, if price stays above the 2350 satoshis, the correctional wave up could be the case, first strong resistance is seen near 3k satoshis area. If broken, further move up should be expected, towards 3.7k satoshis area. And finally, if 3800 satoshis level is broken, with the daily close above, the uptrend might start, inviting a lot more buyers.

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