Here is BTC on the daily chart, with the 200 moving average shown swooping down in purple.
The two blue bars at the bottom indicate a zone which briefly acted as a support for BTC during last November's drop from $6000.
When BTC pumped up again 6 days ago, you can see price never even stopped to say hello to this zone on the way up, which should have acted as a resistance.
You can also see we are approaching the apex of a bullish pennant, which should break in either direction within the next 48 hours.
While an upside break would produce a target of $5650, I think a drop down first is more likely, to test the area of $4630, with a wick as low as $4560.
$4630 is both the 200 moving average, and the top of the previously mentioned support zone, so this should act as a strong area to see price consolidate over, before continuing up.
The two blue bars at the bottom indicate a zone which briefly acted as a support for BTC during last November's drop from $6000.
When BTC pumped up again 6 days ago, you can see price never even stopped to say hello to this zone on the way up, which should have acted as a resistance.
You can also see we are approaching the apex of a bullish pennant, which should break in either direction within the next 48 hours.
While an upside break would produce a target of $5650, I think a drop down first is more likely, to test the area of $4630, with a wick as low as $4560.
$4630 is both the 200 moving average, and the top of the previously mentioned support zone, so this should act as a strong area to see price consolidate over, before continuing up.
This is now looking like a good place to go long for the upside target of $5650. A sustained break back into the triangle, or any movement below it would negate the trade.