BTC has been floating for a week in a downtrend wedge (thin black lines) touching support on 4 occasions and resistance on 3 occasions. It actually stayed longer than I thought on those levels, but has now reached the critical 9.3k I was mentioning in my last analysis.
The indecision leads traders to hold, as we can see volumes are very low, but the price is at a sensitive level and could lead to violent changes because:
- We are close to the top of the long term downward channel (thick green line) touched last week, and a confirmed break above the wedge would send BTC back to that level, it would materialize the ample H & S movement and trigger a solid rise.
- On the downside a break below the short term wedge would send the price to the bottom half of this long term channel. the EMA20, 50 and 200 are all above the current level so there is very little support and those 6k low of Feb 6th could be erased quickly.
Right now I'm neutral and awaiting the action to kick off before taking any long or short positions.
The indecision leads traders to hold, as we can see volumes are very low, but the price is at a sensitive level and could lead to violent changes because:
- We are close to the top of the long term downward channel (thick green line) touched last week, and a confirmed break above the wedge would send BTC back to that level, it would materialize the ample H & S movement and trigger a solid rise.
- On the downside a break below the short term wedge would send the price to the bottom half of this long term channel. the EMA20, 50 and 200 are all above the current level so there is very little support and those 6k low of Feb 6th could be erased quickly.
Right now I'm neutral and awaiting the action to kick off before taking any long or short positions.