Bitcoin is rangebound. This is the prime technical case we've been working on over the last weeks.
It has blown one chance after the other at breaking out, and it's now entirely confirmed that its consolidation is steadily building up.
However this range will ultimately look is of less importance. Diagonal lines of all sorts are much too discretionary to be reliable. But mind you, just because there's plenty of room for subjective interpretation, it does by no account mean all theories are correct. In the end, only ONE way is the right way.
The way I personally like to approach "diagonal lines in progress" is by applying a maximum range thereof, like below.
Ultimately, the more information we get, the more accurate and reliable the lines.
There are several things that speak loudly in technical favor of Bitcoin's rangeboundness.
First of all, upon last Sunday's closing we got ourselves a lower bullish red closing on the RSI. Immediately upon this signal, the price took off by +14% during Monday's trading. However, it's ultimate failure for the RSI to break above the upper bearish blue line was all we needed to know to confirm the drastically weakened momentum.
Secondly, the Bitcoin Fear & Greed index has fluctuated a bit too wildly to convey a probable reversal. The a-bit-too-fast-and-optimistic sentiment recovery amidst the sudden pumps were much too high to mark the birth of a bullish reversal.
What we'd rather be looking for in terms of a sustainable longevity upside is for a disbelief rally. This one is simple. It's look something like this:
Moreover, whenever an underlying fluctuates between moving averages with ease, it is a sure sign of range-bound characteristics. Contrary, whenever an underlying is trending it has a spooky tendency of finding support on a wide range of technical overlays such as Bollinger bands, moving averages, ichimokus, and so on.
Now, on the other hand, Bitcoin is moving back and forth of important indicators.
Here for example are the Bollinger bands, through which the price flicks back and forth between its middle divider.
Amidst this technical range we can expect a significant pressure build-up. As the prevailing trend is downwards, the statistical bias is for a southbound breakout. Such would turn this entire range into a big bear flag.
But, if the ABCDE triangle were to still be intact, then this whole price build-up would prove to be an accumulation. However, before we can tell with high accuracy, we need more data.
With that said, the best predictor and strong-case from here on would be for Bitcoin to take out the upper-hand resistance zone, which would also cause it to break above its sideways range as well as notable EMA and SMA cluster resistance.
/Long Life Trading
It has blown one chance after the other at breaking out, and it's now entirely confirmed that its consolidation is steadily building up.
However this range will ultimately look is of less importance. Diagonal lines of all sorts are much too discretionary to be reliable. But mind you, just because there's plenty of room for subjective interpretation, it does by no account mean all theories are correct. In the end, only ONE way is the right way.
The way I personally like to approach "diagonal lines in progress" is by applying a maximum range thereof, like below.
Ultimately, the more information we get, the more accurate and reliable the lines.
There are several things that speak loudly in technical favor of Bitcoin's rangeboundness.
First of all, upon last Sunday's closing we got ourselves a lower bullish red closing on the RSI. Immediately upon this signal, the price took off by +14% during Monday's trading. However, it's ultimate failure for the RSI to break above the upper bearish blue line was all we needed to know to confirm the drastically weakened momentum.
Secondly, the Bitcoin Fear & Greed index has fluctuated a bit too wildly to convey a probable reversal. The a-bit-too-fast-and-optimistic sentiment recovery amidst the sudden pumps were much too high to mark the birth of a bullish reversal.
What we'd rather be looking for in terms of a sustainable longevity upside is for a disbelief rally. This one is simple. It's look something like this:
Moreover, whenever an underlying fluctuates between moving averages with ease, it is a sure sign of range-bound characteristics. Contrary, whenever an underlying is trending it has a spooky tendency of finding support on a wide range of technical overlays such as Bollinger bands, moving averages, ichimokus, and so on.
Now, on the other hand, Bitcoin is moving back and forth of important indicators.
Here for example are the Bollinger bands, through which the price flicks back and forth between its middle divider.
Amidst this technical range we can expect a significant pressure build-up. As the prevailing trend is downwards, the statistical bias is for a southbound breakout. Such would turn this entire range into a big bear flag.
But, if the ABCDE triangle were to still be intact, then this whole price build-up would prove to be an accumulation. However, before we can tell with high accuracy, we need more data.
With that said, the best predictor and strong-case from here on would be for Bitcoin to take out the upper-hand resistance zone, which would also cause it to break above its sideways range as well as notable EMA and SMA cluster resistance.
/Long Life Trading