What happened after the first impulse MOVE in BLUE ? COUNTER-TREND move shown with Red arrow.
What happened after the first counter-trend move in Red ? Another impulse move almost equal to the magnitude of first counter-trend move.
What does this tell us ? CONGESTION/TRADING-RANGE.
Is the trading range resolved yet ? NO
To see it resolved, we must see a decisive UPSIDE BREAKOUT or DOWNSIDE BREAKDOWN. Once this(either an upside breakout or downside breakdown) occurs we would then know if the pattern(see it's boundaries marked as SUPPORT & RESISTANCE) is re-accumualtion or distribution.
What is the MAJOR TREND ? BULL
What is the OBV ( On Balance Volume) suggesting ? Re-accumualtion pattern.
What is the RSI suggesting ? With it's bearish divergence distribution. That is how I see it anyway.
Does anyone know which direction would the next major move will be ? NO. A BIG NO.
One may utilise congestion analysis by lowering their time frame to daily charts if they wish since we have a clear support and resistance levels.
How do one read the last two bars (penultimate and current bar) ?
Is it a BULLISH PIVOT POINT REVERSAL ? YES it is.
What does a BULLISH PIVOT POINT REVERSAL MEAN in bar chart terms ?
I like bar charts and use bar charts one may switch to candles if they wish.......
GL with your analysis.
This analysis is intended for educational purposes only to help community better understand congestions like the one that BTCUSD is in at present.IT is not an investment or trading advice.