BYBIT:BTCUSD
Perspective is key.
Zooming out we can see we have a bull pennant forming on the D1. Now this pattern playing out would mean that my previous posts & updates from a few days on the Wyckoff distribution pattern playing out would need to be invalidated for this to break to the upside.
The great thing about pennants is that you don't have to enter until you see a break of the patter with volume to see which way the market will move.
Yes this is a bull pennant which would suggest we're going to see some upside in the next week however there's no need to commit to a position just yet and given the broader economic landscape and bitcoin still being greatly correlated to the equities markets how like are we going to see a 22% move from the current price and a 120% move from the bottom this year of $3858. It's less likely but not impossible.
The final thing to consider is purely the price action of the candles that we're seeing.
Long upper wicks suggest greater sell side pressure.
Ultimately the best thing is to monitor the distribution pattern on the shorter time frames to see if it continues to play out as expected. If the trade starts to go awry then watching for confirmation of this pattern on this HTF would give us an alternative set up to play.
Perspective is key.
Zooming out we can see we have a bull pennant forming on the D1. Now this pattern playing out would mean that my previous posts & updates from a few days on the Wyckoff distribution pattern playing out would need to be invalidated for this to break to the upside.
The great thing about pennants is that you don't have to enter until you see a break of the patter with volume to see which way the market will move.
Yes this is a bull pennant which would suggest we're going to see some upside in the next week however there's no need to commit to a position just yet and given the broader economic landscape and bitcoin still being greatly correlated to the equities markets how like are we going to see a 22% move from the current price and a 120% move from the bottom this year of $3858. It's less likely but not impossible.
The final thing to consider is purely the price action of the candles that we're seeing.
Long upper wicks suggest greater sell side pressure.
Ultimately the best thing is to monitor the distribution pattern on the shorter time frames to see if it continues to play out as expected. If the trade starts to go awry then watching for confirmation of this pattern on this HTF would give us an alternative set up to play.
