Hi everyone! Let's get to what's up with
BTCUSD
lately. On the four hour chart,
BTCUSD
rallied once it touched the 78.6% retrace. The 78.6% retrace also intersected at the exact point where we drew a bearish pennant pattern. As soon as the 78.6% retrace was hit and
BTCUSD
intersected with the pennant, an immediate bullish divergence kicked in.
The bullish divergence coincided with positive news released from the FSA stating they're not pursuing aggressive regulations on cryptocurrency at this time. The stars aligned for a bullish run and that's exactly what happened. If you blinked, you missed it.
We can see the bulls have been in full force since the news was released Sunday. The MACD has entered into a bullish swing and the SQZMOM indicator is showing consecutive bullish candles without a change in momentum.
At the moment,
BTCUSD
is playing ping pong on the 50 EMA and is consolidating in a bullish flag. We've seen a similar bullish change in momentum back in February. There is resistance at the 200 EMA which coincides with the 38.2% retrace and approaching the daily resistance bearish trendline.
Remember, it's never a good idea to trade in a pattern. If
BTCUSD
sees a bullish break from the bull flag, the next level of resistance is $9,500. A bearish break could take it right back down to mid $7,000's.
As always, be smart with your money. Topics discussed in this post are not financial advice. DYOR
BTCUSD
lately. On the four hour chart,
BTCUSD
rallied once it touched the 78.6% retrace. The 78.6% retrace also intersected at the exact point where we drew a bearish pennant pattern. As soon as the 78.6% retrace was hit and
BTCUSD
intersected with the pennant, an immediate bullish divergence kicked in. The bullish divergence coincided with positive news released from the FSA stating they're not pursuing aggressive regulations on cryptocurrency at this time. The stars aligned for a bullish run and that's exactly what happened. If you blinked, you missed it.
We can see the bulls have been in full force since the news was released Sunday. The MACD has entered into a bullish swing and the SQZMOM indicator is showing consecutive bullish candles without a change in momentum.
At the moment,
BTCUSD
is playing ping pong on the 50 EMA and is consolidating in a bullish flag. We've seen a similar bullish change in momentum back in February. There is resistance at the 200 EMA which coincides with the 38.2% retrace and approaching the daily resistance bearish trendline. Remember, it's never a good idea to trade in a pattern. If
BTCUSD
sees a bullish break from the bull flag, the next level of resistance is $9,500. A bearish break could take it right back down to mid $7,000's. As always, be smart with your money. Topics discussed in this post are not financial advice. DYOR