We can see higher lows and lower highs for Bitcoin as highlighted by the yellow circles, which indicates we're going to see a breakout soon.
We're being firmly trapped by the 4h 200ema, and also supported by the month long trend line. With volume clearly dropping off with Ethereum hogging the limelight, it is unlikely we will break this 200EMA with any conviction. This EMA will guide bitcoin down towards the trend line, eventually forcing a break downwards.
It looks as though we will break down with significant volume creating some liquidity and volume to potentially go back and retest former highs. Having said this, I would not be short for too long, as there is plenty of room and momentum to retest 4200+ and a break could take us to 5100.
Short entries - 3840-3880
Stop loss - 3930
Targets - 3650, 3550, 3450
RR - 3:1+
We're being firmly trapped by the 4h 200ema, and also supported by the month long trend line. With volume clearly dropping off with Ethereum hogging the limelight, it is unlikely we will break this 200EMA with any conviction. This EMA will guide bitcoin down towards the trend line, eventually forcing a break downwards.
It looks as though we will break down with significant volume creating some liquidity and volume to potentially go back and retest former highs. Having said this, I would not be short for too long, as there is plenty of room and momentum to retest 4200+ and a break could take us to 5100.
Short entries - 3840-3880
Stop loss - 3930
Targets - 3650, 3550, 3450
RR - 3:1+
Comment:
Well! I was right about the breakout, just the wrong way direction!
Comment:
Trend line eventually broken and targets hit