Hello everyone and welcome to this analysis on BTC. Let's jump right into it.
Here you can see that the price of BTC has been trading in the symmetrical triangle drawn in white. Usually what happens with these patterns is that the price is likely to breakout up or down. In order to asses which direction it will make its move we can use indicators, watch volume and analysis the overall trend.
On this chart, you can observe that the volume of each rally/dump has been consistently decreasing which indicates that this market is missing liquidity. Despite that fact, the price has been trading lower and lower the past few days and is generating a sentiment of uncertainty in the crypto-sphere. if you add the overall sentiment in your analysis you will find out that more and more people are turning bearish. This is time to BUY. On the other hand, back in December everyone was bullish and this was the time to SELL.
I prepared myself for 3 different scenarios (from most likely to less likely):
1) The price touches the first lower edge (white) of the triangle, bounces off of it and continues its formation in the triangle before breaking out to the upside.
2) The price touches the second lower edge (red) of the triangle, bounces off of it and sees itself in the triangle before making its move upward.
3) The price breakthrough the second lower edge (red) of the triangle. If the price closes under this red line we will be likely to see more downward actions. The reason is the if BTC goes under this line, it will break the previously formed trend line of February 6th.
I hope you enjoyed this analysis, happy trading :)
**Not Financial advice**
Here you can see that the price of BTC has been trading in the symmetrical triangle drawn in white. Usually what happens with these patterns is that the price is likely to breakout up or down. In order to asses which direction it will make its move we can use indicators, watch volume and analysis the overall trend.
On this chart, you can observe that the volume of each rally/dump has been consistently decreasing which indicates that this market is missing liquidity. Despite that fact, the price has been trading lower and lower the past few days and is generating a sentiment of uncertainty in the crypto-sphere. if you add the overall sentiment in your analysis you will find out that more and more people are turning bearish. This is time to BUY. On the other hand, back in December everyone was bullish and this was the time to SELL.
I prepared myself for 3 different scenarios (from most likely to less likely):
1) The price touches the first lower edge (white) of the triangle, bounces off of it and continues its formation in the triangle before breaking out to the upside.
2) The price touches the second lower edge (red) of the triangle, bounces off of it and sees itself in the triangle before making its move upward.
3) The price breakthrough the second lower edge (red) of the triangle. If the price closes under this red line we will be likely to see more downward actions. The reason is the if BTC goes under this line, it will break the previously formed trend line of February 6th.
I hope you enjoyed this analysis, happy trading :)
**Not Financial advice**
Comment:
Accumulation phase, very good sign if break out to the upside
Comment:
Bullish divergence on the 4 hr