BTCUSD Points of Interest Short and Long Term - 20/05/2020

FTX:BTCUSD   Bitcoin / U.S. Dollar
As shown on the charts we can see 3 formations forming and all overlapped.
  • Short-term pennant ( rising wedge ) (Only mentioning this for scalping)
  • Steadily increasing channel from our local low of 3800 from 2 months ago
  • A larger pennant over the years and we are in the upper band.

This means I have 2 points where I have high confidence that they will confirm a bull or bear trend which I would be looking for a longer-term hold (between days and weeks)

BULLISH CASE @ above $10,195.5
BEARISH CASE @ below $8617.5

On a shorter time frame we can see another pennant forming where there will be a high chance of a breakout

BREAKOUT UP @ $10,000

Although, until we breakout to the outside of $8617 and $10,195 we will be closing any calling trades when they are immediately in profit as the volatility can eat your trade (especially if you are leveraged)

We still haven't seen a convincing break from correlation from stocks just yet. Looking at what is going on in the markets we can see that:
  • DJI is still below 25000
  • SPY below 3000
  • China/US trade deals (that are hurting world economies)
  • Trying to prop oil markets up and penalising renewables
  • Large amounts of speculation on pharma companies
This still worries me for a huge quick drop which IMO will take the crypto markets with them as I believe many institutional investors will immediately sell their crypto to cover their long margin calls and keep their stocks.

We also have
  • Bitmex accusations for money laundering and negligence