EDIT: Bitcoin went under the 2177 level, I am bearish for the time being unless it can reclaim 2200 with volume. We might be headed for a FOURTH test of the bottom trendline, but that might make this a weak flag in my book. Regardless, such a spot rest where prior resistance area was 2100-2140.
second EDIT: We reclaimed 2200 with volume and continued to break out of upper trendline. I am back to bull
Bitcoin is setting up perfectly during the weekend to make a very nice move it seems. But first a recap.
We had a super high volume crash and bounce where we went down and up 20% in a matter of days on 4x + normal volume (some exchanges over 6x+!!!) a lot of emotion to say the least.
Bit coin had a strong rebounce, with very few pullbacks to 2140, then based, and developed a stair case pattern all the way to 2333. Since then bitcoin has been flagging on declining bottom, with 2320 also signaling the point in which we first went off the cliff, suggesting we might be seeing a classic cup and handle. On top of that, the handle is being developed on declining volume, which is a very strong sign.
So what i personally want to see if i was bullish: A break above green line with volume expansion with follow through above yellow line. Stop loss would be ready line, around 2177~.
As a bear I would be weary until volume comes back and goes below 2170 level w/ volume..
overall the combination of cup and handle, and a flag with declining volume makes me more bullish than not, but regardless an exit strategy is in place.
second EDIT: We reclaimed 2200 with volume and continued to break out of upper trendline. I am back to bull
Bitcoin is setting up perfectly during the weekend to make a very nice move it seems. But first a recap.
We had a super high volume crash and bounce where we went down and up 20% in a matter of days on 4x + normal volume (some exchanges over 6x+!!!) a lot of emotion to say the least.
Bit coin had a strong rebounce, with very few pullbacks to 2140, then based, and developed a stair case pattern all the way to 2333. Since then bitcoin has been flagging on declining bottom, with 2320 also signaling the point in which we first went off the cliff, suggesting we might be seeing a classic cup and handle. On top of that, the handle is being developed on declining volume, which is a very strong sign.
So what i personally want to see if i was bullish: A break above green line with volume expansion with follow through above yellow line. Stop loss would be ready line, around 2177~.
As a bear I would be weary until volume comes back and goes below 2170 level w/ volume..
overall the combination of cup and handle, and a flag with declining volume makes me more bullish than not, but regardless an exit strategy is in place.