BTCUSD, Consolidation: Get Ready for A Breakout!

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Hello traders! Bitcoin has been a little silent lately. A symmetric triangle has formed in the intra-day chart. Of course, a breakout comes after consolidation. We have a breakout within the next 30 hours! But where will prices go? I will breakdown the analysis I made for Bitcoin .

Let us see the key points:

1. Bitcoin has a possible Head and Shoulders Formation

Bitcoin has a possible H&S formation. The left shoulder and head are already formed. We just need the right shoulder to break the neckline(green dashed line) for confirmation. If this happens, the price will dive below 30k. The red dashed line will be our trendline after.

2. Very Strong Bullish Trendline still Holds
The green dashed line in the chart is still very strong, as the price never went below it since Christmas the last year.
This trendline makes it hard for the awaiting H&S pattern to actually complete.

3. RSI is at somehow oversold levels
The RSI touched oversold levels already. If the RSI trendline(see chart) breaks along with the symmetric triangle, we can see a good uptrend.

4. The 75 Period SMA , former support, is now a tough resistance
The 75 MA formerly acted as support in the previous uptrend. After the price went below it and tested it for a pullback, the MA restricted any price movement from there.

5. Lower volume with the symmetric Triangle
As the symmetric triangle develops, the volume keeps getting lower. This is saying that Bitcoin traders are undecided. This means that the breakout will be very strong.

6. The Elliott wave maybe a Correction wave or a Trend Wave
If the green dashed line breaks down, we have a trend wave. If not, we have just a correction wave, meaning the steep dive form 41k was just a pullback.

Now, we just wait for the symmetric Triangle to break in either direction. Good luck, thank you!

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Nice charts and technical analysis.
+2 Reply
What do you think guys?
thezone Trader_ph
@Trader_ph, i think this is a good chart to keep up. overall im bullish...60% of me thinks we hit 27900 before as a bear trap and then do it back up ... not sure... big moment of truth for btc.. i see 3 head and shoulders to 1 inverse H&s... not sure if those odds are real though
Trader_ph thezone
@thezone, thanks!
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