Trend Analysis:
On the 1D chart, the Bitcoin price is following a simple ABCD pattern. The price reached a new short-term high but is struggling to break past the next high at ~$10,900. The price will continue to test this until it breaks it or just falls back down to the mid $9,000s. We are at a crucial moment because once we break out of this triangle, it will dictate what market we will be in, Bull or Bear.
We are very close to breaching the top triangle trendline and entering bull zone, but with the rejections at $10,900 we may just see a short term reversal down before we blast off again. If we can break past this trendline and the ~$10,900 resistance, then we should be clear to go back up to the $12,000 range.
If we break past the key support at ~$9,350 then it looks like we may drop to the mid $7,000s on a downward trend.
Technical notes:
After a small uptick, the RSI is now moving sideways. This could either mean we are going to start consolidating or we are headed for a small reversal of the recent upswing. The EMA(20) is looking healthy and is still below the price, so this means we still have the momentum. If we can hold this momentum, we will enter the bull zone listed on the chart.
Conclusion:
This may take a day or a couple of weeks, but once we break through any of the trendlines on the triangle, we should see what the overall trend may be.
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Happy trading!
On the 1D chart, the Bitcoin price is following a simple ABCD pattern. The price reached a new short-term high but is struggling to break past the next high at ~$10,900. The price will continue to test this until it breaks it or just falls back down to the mid $9,000s. We are at a crucial moment because once we break out of this triangle, it will dictate what market we will be in, Bull or Bear.
We are very close to breaching the top triangle trendline and entering bull zone, but with the rejections at $10,900 we may just see a short term reversal down before we blast off again. If we can break past this trendline and the ~$10,900 resistance, then we should be clear to go back up to the $12,000 range.
If we break past the key support at ~$9,350 then it looks like we may drop to the mid $7,000s on a downward trend.
Technical notes:
After a small uptick, the RSI is now moving sideways. This could either mean we are going to start consolidating or we are headed for a small reversal of the recent upswing. The EMA(20) is looking healthy and is still below the price, so this means we still have the momentum. If we can hold this momentum, we will enter the bull zone listed on the chart.
Conclusion:
This may take a day or a couple of weeks, but once we break through any of the trendlines on the triangle, we should see what the overall trend may be.
Follow me on Twitter for more TA!
Happy trading!
