Bitcoin : Phase 2 of break out, A trend retest for higher high?
Bitcoin has already broken out of the blue region and it spiked to the higher region which was above the $12000 region which is the psychological zone for this current price action. Earlier this morning, the bears has pushed the price to the lower region as it stumbled to the $11700 region which is another $500 push. Will this be a reversal action or the ideal correction? let's see!
Based on the price action, when we see any break out of the white trend line which previously acted as a broken support, a bear trap is activated and there will be a potential new wave to the upside as well. But, with the previous $500 drop, the action of reclaiming the support trend line could only mean nothing. In my point of view, we can't say this as a reversal pattern yet because we still have some confluence reasons to argue.
First reason is the blue region. At the previous price action, this region was acting as a resistance and now it has been broken out with a huge spike to the upside. However, since the event of break out we haven't seen any action that represent the phase 2 of break out strategy which is a retest toward this blue region as the confirmed support. At this point, the price has shown us some good rejection toward the support below and this action could be the phase 2 with a beautiful hammer candle on the 2 hours chart.
Second reason is the RSI which always giving us a significant effect and positive outcome in most condition. A higher low on the price and lower low on the RSI means a lot to me. It's the representation of what we called the hidden bullish divergence which gives us signal of continuation of higher low to occur in the next run.
At this rate, I'll wait until further confirmation. I still see this as a complicated consolidation pattern which leave us in the unbiased condition. But for short term we might see a further combination of higher high and higher low to occur.
Based on the price action, when we see any break out of the white trend line which previously acted as a broken support, a bear trap is activated and there will be a potential new wave to the upside as well. But, with the previous $500 drop, the action of reclaiming the support trend line could only mean nothing. In my point of view, we can't say this as a reversal pattern yet because we still have some confluence reasons to argue.
First reason is the blue region. At the previous price action, this region was acting as a resistance and now it has been broken out with a huge spike to the upside. However, since the event of break out we haven't seen any action that represent the phase 2 of break out strategy which is a retest toward this blue region as the confirmed support. At this point, the price has shown us some good rejection toward the support below and this action could be the phase 2 with a beautiful hammer candle on the 2 hours chart.
Second reason is the RSI which always giving us a significant effect and positive outcome in most condition. A higher low on the price and lower low on the RSI means a lot to me. It's the representation of what we called the hidden bullish divergence which gives us signal of continuation of higher low to occur in the next run.
At this rate, I'll wait until further confirmation. I still see this as a complicated consolidation pattern which leave us in the unbiased condition. But for short term we might see a further combination of higher high and higher low to occur.
