Trend Analysis:
Bitcoin broke out of the symmetrical triangle pattern and now looks like it could be headed over $11,000. The price hit the resistance of ~$10,500 and is now testing it to see if we could shoot up even further. The pattern it has created now looks like a cup and handle pattern, so if this is true, we could see a short downward trend followed by another rise to the $11,000+ range.
If the price breaks through the white ascending trend line, then we could see another trend forming. But for now, all indicators show that it has healthy momentum for another rise.
Technical notes:
The RSI is in the overbought range with healthy momentum. Watch for the RSI to retract back down out of the overbought range and then if it can't rise back into the overbought area, then this could indicate a bearish failure swing. The volume has increased dramatically since the price rose, but we could see a slow down in volume, and a price consolidation before we blast off again.
Conclusion:
The price may drop a bit while on this downward trend making the handle of the "cup and handle" pattern. If it falls in line with the trend lines, then get ready for it to blast off again. If it breaks past the white trend line before we reach the target, wait for another pattern to form.
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Happy trading!
Bitcoin broke out of the symmetrical triangle pattern and now looks like it could be headed over $11,000. The price hit the resistance of ~$10,500 and is now testing it to see if we could shoot up even further. The pattern it has created now looks like a cup and handle pattern, so if this is true, we could see a short downward trend followed by another rise to the $11,000+ range.
If the price breaks through the white ascending trend line, then we could see another trend forming. But for now, all indicators show that it has healthy momentum for another rise.
Technical notes:
The RSI is in the overbought range with healthy momentum. Watch for the RSI to retract back down out of the overbought range and then if it can't rise back into the overbought area, then this could indicate a bearish failure swing. The volume has increased dramatically since the price rose, but we could see a slow down in volume, and a price consolidation before we blast off again.
Conclusion:
The price may drop a bit while on this downward trend making the handle of the "cup and handle" pattern. If it falls in line with the trend lines, then get ready for it to blast off again. If it breaks past the white trend line before we reach the target, wait for another pattern to form.
Follow me on Twitter for more TA!
Happy trading!
