Expanding "Megaphone" formation indicates an irrational market
Hello everyone.
BTC has recently made a break above trend resistance to move to $24,300. Some things to consider:
Once again, a lack of sustained volume with BTC has been noticed. This flaw comes back to bite it every time the bulls try to recapture gains and push BTC upwards as it greatly hinders their price momentum. On the weekly TF, volume has increased, but still below highs we have seen at the local bottom price of $17K, not good news. On the daily, volume has seen a stark drop-off from the push above trend resistance at $23,600, once again bad news.
On the good news, BTC's reclaimed position above resistance shows it can try to test the 200W MA, a key indication of long-term support. BTC currently holds support at $22,000 and $19,600, resistance at $24,300 and $26,800.
BTC is forming a bullish impulse wave, currently on wave 4. This pattern is valid as long as BTC can hold $22,000.
The most important factor right now is trend. BTC is forming an expanding "megaphone" formation, which indicates the market is indifferent about where the current price of BTC should be. It indicates it is irrational, which I agree upon. This pattern is very bearish. I believe we will see a break below the support levels soon.
Fed is announcing their rate hike on 26th-27th July, and official U.S. GDP numbers are due to be released 28th. It is unclear if BTC has "priced in" a recession, however, I do not see BTC holding current major support of $17K if a recession is to be confirmed.
Let me know your opinions.
BTC has recently made a break above trend resistance to move to $24,300. Some things to consider:
Once again, a lack of sustained volume with BTC has been noticed. This flaw comes back to bite it every time the bulls try to recapture gains and push BTC upwards as it greatly hinders their price momentum. On the weekly TF, volume has increased, but still below highs we have seen at the local bottom price of $17K, not good news. On the daily, volume has seen a stark drop-off from the push above trend resistance at $23,600, once again bad news.
On the good news, BTC's reclaimed position above resistance shows it can try to test the 200W MA, a key indication of long-term support. BTC currently holds support at $22,000 and $19,600, resistance at $24,300 and $26,800.
BTC is forming a bullish impulse wave, currently on wave 4. This pattern is valid as long as BTC can hold $22,000.
The most important factor right now is trend. BTC is forming an expanding "megaphone" formation, which indicates the market is indifferent about where the current price of BTC should be. It indicates it is irrational, which I agree upon. This pattern is very bearish. I believe we will see a break below the support levels soon.
Fed is announcing their rate hike on 26th-27th July, and official U.S. GDP numbers are due to be released 28th. It is unclear if BTC has "priced in" a recession, however, I do not see BTC holding current major support of $17K if a recession is to be confirmed.
Let me know your opinions.