Bitcoin is being wound up for a breakout. Will it fly or crash?
The current Bitcoin price action reminds me of rubber elastic powered balsa wood airplane that I used to play with when I was a kid. The red propeller would be attached to an elastic band and turning the propeller would wind up the elastic. The more you turn it, the greater the tension on the elastic and the higher the plane will fly, at least in theory. As long as the elastic didn't break. :-)
On the 30 minute chart the Bitcoin price has been coiling up between the 200 EMA on the bottom and the upper resistance line. The 21 EMA is the elastic being tightly wound up. In a couple of days (or sooner) it will be wound up so tight it will have to release all of that energy.
There are only 2 directions it can go, and it will move quite fast when it does breaks out. Make sure you have your limit buy orders or shorts already in place. Hopefully there won't be time for a fake out move prior to the breakout.
UP: I give it a 60% chance it will break to the upside to meet or exceed the recent high. When it gets to the high we may see a pause as profit taking occurs. But I don't expect we will see 10k again if this happens.
DOWN: The other alternative is that the price will drop to one of the support zones.
Support Zone #1 is around the 10,500 area and we will likely get a bounce from that.
Zone #2 is less likely and I doubt we will be given another chance to buy in at 9100.
So there you have it. Will it soar to new highs? Or will the wings fall off our Bitcoin plane and it plummets to one of the support zones? We should know by Monday (probably sooner).
(Don't forget to hit the Like Button on your way out)
On the 30 minute chart the Bitcoin price has been coiling up between the 200 EMA on the bottom and the upper resistance line. The 21 EMA is the elastic being tightly wound up. In a couple of days (or sooner) it will be wound up so tight it will have to release all of that energy.
There are only 2 directions it can go, and it will move quite fast when it does breaks out. Make sure you have your limit buy orders or shorts already in place. Hopefully there won't be time for a fake out move prior to the breakout.
UP: I give it a 60% chance it will break to the upside to meet or exceed the recent high. When it gets to the high we may see a pause as profit taking occurs. But I don't expect we will see 10k again if this happens.
DOWN: The other alternative is that the price will drop to one of the support zones.
Support Zone #1 is around the 10,500 area and we will likely get a bounce from that.
Zone #2 is less likely and I doubt we will be given another chance to buy in at 9100.
So there you have it. Will it soar to new highs? Or will the wings fall off our Bitcoin plane and it plummets to one of the support zones? We should know by Monday (probably sooner).
(Don't forget to hit the Like Button on your way out)
I am not using them to determine the breakout, but they are interesting to see how both indicators are coiling up. The elastic is getting tighter. Let's hope it doesn't break (to the downside).