Watch closely for the pennant break
This is Bitcoin on the hourly! And now this is us on what I see as a multiple day long bearish pennant, a symmetrical triangle after a bearish move, that usually suggests follow through to the downside though it does sometimes break out bullish.
As you can see by the major support and resistance trend lines, this pennant is not the only space where we're pretty tight. What we're seeing here is indecision as two very important trend lines come together.
There's a couple good signs for the bulls, namely the bullish divergence on the RSI as well as the MACD, which are both steadily growing even though we're on a tightening range of lower highs and higher lows. However nothing is set in stone until the break of the tightening pattern. The lines cross very soon, so there should be a break to either side no more than 3 hours from now.
Happy trading and remember to protect yourselves with stop losses!
As you can see by the major support and resistance trend lines, this pennant is not the only space where we're pretty tight. What we're seeing here is indecision as two very important trend lines come together.
There's a couple good signs for the bulls, namely the bullish divergence on the RSI as well as the MACD, which are both steadily growing even though we're on a tightening range of lower highs and higher lows. However nothing is set in stone until the break of the tightening pattern. The lines cross very soon, so there should be a break to either side no more than 3 hours from now.
Happy trading and remember to protect yourselves with stop losses!
Comment:
Remember: a breakout isn't confirmed with just price action over the line I drew, drawing trend lines can be tricky and everyone will draw them in different places. I consider a breakout either a higher high compared to 6850, or a lower low compared to 6671.