LTSInvestor

Bitcoin heading down for a retest and then... fly baby fly!

Long
CME:BTC1!   Bitcoin CME Futures
Hi all, today I am using the CME chart as it's cleaner. I learned this from Eric Krown. The CME daily chart shows Bitcoin's break out from an ascending triangle. And as fate would have it, the measured move takes us to $10.5K, a critical level. BTC needs to break this level in order to reverse the trend from a downtrend to a uptrend. However, BTC is seeing resistance from the downward sloping trend line representing the top of the descending broadening wedge BTC's been in for almost 1-year. So, what happens next? I think that Bitcoin is going to retest the top of the ascending triangle and then make a move to $10.5K which I think it will break. Why do I think this? Because the Stochastic RSI is in overbought territory and the RSI and Money Flow are about to enter overbought territory. Whenever all 3 of these indicators line up like this, we see a correction in Bitcoin's price. So, I think that we'll see price correct to the top of the triangle which will cool off the indicators, and then BTC will resume its push to break $10.5. And when it does, well, given the descending broadening wedge, that suggests a break out target of $14K :-) Only time will tell and until then my friends... Happy trading!

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