BTCUSD consolidating under the $6800 block. Time for a push?
Good morning, traders. It's a new week and Bitcoin continues to consolidate, albeit above the previous range. The question is, will we finally see the push up and possible short squeeze that we've been watching set up for a while now or will price drop?
The 1H chart shows us that price has been moving within an ascending channel since August 13th, however price is also currently consolidating within that channel right under the $6800 block. This consolidation appears to be ending with an ascending broadening wedge which is most often a bullish pattern and, if breached to the topside, should send price targeting the R1 pivot at $7000. As I have discussed many times, there should be a significant number of stop losses and long orders waiting to be filled above $6950. So, if price makes it to that point, then my expectation is to see a lot of short-covering or a short squeeze which should propel price even higher.
A look at the 1D chart shows us that we have been in a similar position twice before, once in June and July. Both times previously, just as now, we saw price printing an ascending wedge. This is most often a bearish pattern and the expectation is generally to see price fall through the bottom of it. If it does, then I would expect it to find support at the green horizontal channel's median line around $6240-$6250. That doesn't mean we wouldn't possibly see wicks down another $100 or so, just that ultimately that's where we should see support. If we look at the two previous examples, the belief would be that we fall sooner rather than later, but if the 1H wedge plays out, then we should see price moving to the top of the wedge before coming down. Patterns are never guaranteed to play out as expected 100% of the time, so price reaching the $7000 level and setting off stop losses and long orders may send price through the top of the wedge, in which case I may only expect to see price use the $6800 block as support when it retraces, depending on just how far upward price moves. The 1H chart has seen OBV steadily increasing since August 22nd which gives support to the upward progression of price, however we need to see OBV breach the horizontal black line. Currently, TensorCharts.com is showing strong support from $6660-$6680 and resistance at $6800.
As always, we live stream at 9 a.m and 10 p.m. CST Monday-Friday where we discuss price action in greater depth, answer questions, and more. TV doesn't allow me to post the location of the live streams, but it's easily found so I'm sure that you will be able to find it if you're of the mind to do so.
The 1H chart shows us that price has been moving within an ascending channel since August 13th, however price is also currently consolidating within that channel right under the $6800 block. This consolidation appears to be ending with an ascending broadening wedge which is most often a bullish pattern and, if breached to the topside, should send price targeting the R1 pivot at $7000. As I have discussed many times, there should be a significant number of stop losses and long orders waiting to be filled above $6950. So, if price makes it to that point, then my expectation is to see a lot of short-covering or a short squeeze which should propel price even higher.
A look at the 1D chart shows us that we have been in a similar position twice before, once in June and July. Both times previously, just as now, we saw price printing an ascending wedge. This is most often a bearish pattern and the expectation is generally to see price fall through the bottom of it. If it does, then I would expect it to find support at the green horizontal channel's median line around $6240-$6250. That doesn't mean we wouldn't possibly see wicks down another $100 or so, just that ultimately that's where we should see support. If we look at the two previous examples, the belief would be that we fall sooner rather than later, but if the 1H wedge plays out, then we should see price moving to the top of the wedge before coming down. Patterns are never guaranteed to play out as expected 100% of the time, so price reaching the $7000 level and setting off stop losses and long orders may send price through the top of the wedge, in which case I may only expect to see price use the $6800 block as support when it retraces, depending on just how far upward price moves. The 1H chart has seen OBV steadily increasing since August 22nd which gives support to the upward progression of price, however we need to see OBV breach the horizontal black line. Currently, TensorCharts.com is showing strong support from $6660-$6680 and resistance at $6800.
As always, we live stream at 9 a.m and 10 p.m. CST Monday-Friday where we discuss price action in greater depth, answer questions, and more. TV doesn't allow me to post the location of the live streams, but it's easily found so I'm sure that you will be able to find it if you're of the mind to do so.