Alright, when looking at the bigger weekly perspective you can see in my chart that bitcoin is trading in a huge upward-rising which is marked in grey, at the moment bitcoin is trading above the middle line of the channel which is building a together with the 50-EMA here, there is also this significantly important falling resistance line which bitcoin still not taken out and confirmed to the upside, these three levels building an overall triangular-cluster here which you can see marked in my chart. The importance now is that after such formations there will be a heavy break either to the up or downside confirming the triangular-cluster with a significant breakout.
Bullish Confirmational Scenario:
Bearish Confirmational Scenario:
At the moment as we have still support within this range it is more likely for bitcoin to confirm this support and break to the upside but this, however, has to be confirmed properly like often in the markets otherwise when we cant hold the important 50-EMA and middle-line of the we will see an increasing possibility for pressure to the downside when confirmed below. Therefore to fulfill the more likely scenario we need to break clearly above the falling resistance-line with good , this will show an initial start of the further continuation and targeting of higher levels, the second confirmation of the scenario will be when we confirm above the 10500 level which is still a fundamental resistance here.
Overall what is important to keep in mind is that bitcoin is trading at an important psychological level where it is hard to maintain a continuation to the upside because it failed several times at this resistance therefore the scenario shouldn't be ignored, what is fact is that we will see an heavy break out the next time which needs to be confirmed before playing trade in the proper direction as for now I wouldn't open a trade immediately before no confirmation has been shown either on the small timeframe or higher timeframe, when placing a trade now it will be a mere speculative approach and this is most often a fatal mistake many people falling in the global markets today, the wisest approach is to wait on confirmation in this current situation facing bitcoin before taking advantage of the situation.
Thanks for wachting, support for more market insight, all the best!
Information provided is for educational purposes only and should not be used to take action in the markets.
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My own preference is to trade using Point and Figure and Wyckoff simply because it works best for me. That being said, I'm seeing a normal Wyckoff Distribution patter happening off both my daily and Intraday (4H), with the current cause built from the consolidation at around $1,020. This would project the current price for the Change of Character move after consolidation to about $8,580 should consolidation end. FWIW, my feeling is we are more likely to see the low end of the daily trading range ($8,120) before we revisit the $10,000 region, then go back down in a final distribution move.