The action in Bitcoin (the past couple of days have been choppy to say the least. Are we gonna break up or down?
Looking at the overall pattern on a smaller timeframe, we can see that we have clear resistance levels to break to the upside, while there is steady accumulation from the bottom.
What does this mean?
Typical for ascending triangle patterns, they are usually bullish in nature, and signal continuation. That volume is dropping off is another sign that this is indeed an ascending triangle. We should see a spike up in volume should break out occur. I suspect that we could see a break to the upside of this pattern within the next couple of days. More cautious traders may want to wait for a breakout before entering, while others more risk-perverse traders will position themselves before the break.
Note that fake breakouts may occur, so be careful using leverage in these market conditions.
NB! I suspect that this breakout should enable us to form a lower high on the daily chart, and that the prevailing bear trend then will continue.
Looking at the overall pattern on a smaller timeframe, we can see that we have clear resistance levels to break to the upside, while there is steady accumulation from the bottom.
What does this mean?
Typical for ascending triangle patterns, they are usually bullish in nature, and signal continuation. That volume is dropping off is another sign that this is indeed an ascending triangle. We should see a spike up in volume should break out occur. I suspect that we could see a break to the upside of this pattern within the next couple of days. More cautious traders may want to wait for a breakout before entering, while others more risk-perverse traders will position themselves before the break.
Note that fake breakouts may occur, so be careful using leverage in these market conditions.
NB! I suspect that this breakout should enable us to form a lower high on the daily chart, and that the prevailing bear trend then will continue.
Comment:
Not much has changed since the last analysis and we’re continuing to thighten up. Currently in a 4 hr equilibrium with support at 6300 and resistance at 6622ish. I suspect we will find the break of this ascending triangle within the next day or two.
Be tolerant with others and strict with yourself.
- Marcus Aurelius
- Marcus Aurelius