It seems BTCUSD is at cross roads again with mixed signals on the 4 hr chart and will break in either direction within the next couple days.
For the bullish scenario, we have a symmetrical triangle or an ascending triangle, depending on how the triangle pattern plays out, and for the bearish scenario we have a descending triangle within a larger descending triangle.
Symmetrical Triangle:
We have a symmetrical triangle forming with an inverted head shoulders and for this to play out we need to see a bounce from the $6525 symmetrical triangle support and BTC needs to break the symmetrical triangle resistance above $6700 and then potentially break the heavy $6750 - $6860 resistance to potentially reach the previous $7400 peak.
Ascending Triangle:
If the $6700 breaks, BTC still needs to break heavy resistance between $6750 and $6860. If BTCUSD reaches this $6750 - $6860 level and retraces back inside the symmetrical triangle support then a larger ascending triangle may be in play which sets the $6800 level as the base resistance of the ascending triangle which could then could break upwards towards the orange upper trend line towards the $7400 peak.
Descending Triangle:
For the bearish scenario we have stochRSI sitting in overbought territory and if BTCUSD does not find support at the base of the symmetrical triangle at around $6525 and falls from there, then BTC might find the orange horizontal support at around $6350, which would also then potentially form a base for a descending triangle and the bears would then the bias will be towards the bears for a bearish scenario.
Larger Descending Triangle:
If BTCUSD falls below the support of the bearish descending triangle, then there is another larger descending triangle to carry the momentum further and take BTC down to its yearly lows.
Happy trading and good luck!
Previous analysis:
For the bullish scenario, we have a symmetrical triangle or an ascending triangle, depending on how the triangle pattern plays out, and for the bearish scenario we have a descending triangle within a larger descending triangle.
Symmetrical Triangle:
We have a symmetrical triangle forming with an inverted head shoulders and for this to play out we need to see a bounce from the $6525 symmetrical triangle support and BTC needs to break the symmetrical triangle resistance above $6700 and then potentially break the heavy $6750 - $6860 resistance to potentially reach the previous $7400 peak.
Ascending Triangle:
If the $6700 breaks, BTC still needs to break heavy resistance between $6750 and $6860. If BTCUSD reaches this $6750 - $6860 level and retraces back inside the symmetrical triangle support then a larger ascending triangle may be in play which sets the $6800 level as the base resistance of the ascending triangle which could then could break upwards towards the orange upper trend line towards the $7400 peak.
Descending Triangle:
For the bearish scenario we have stochRSI sitting in overbought territory and if BTCUSD does not find support at the base of the symmetrical triangle at around $6525 and falls from there, then BTC might find the orange horizontal support at around $6350, which would also then potentially form a base for a descending triangle and the bears would then the bias will be towards the bears for a bearish scenario.
Larger Descending Triangle:
If BTCUSD falls below the support of the bearish descending triangle, then there is another larger descending triangle to carry the momentum further and take BTC down to its yearly lows.
Happy trading and good luck!
Previous analysis:
