Break out - Ascending triangle and bullish divergence part 2
Bitcoin back in the game! Following on from my previous chart, BTC had fallen out of the ascending triangle and was consolidating at around 0.5 fib $6475. The 4 hr candle broke above and then opened back inside the ascending triangle after finding support and the hidden bullish divergence on the RSI is still in play.
We have 2 trend lines acting as strong resistance, the purple trend line which connects the peaks on 24 July, 4 September and 28 September and the orange trend line connecting the peaks on 05 May and 24 July. Once we break through these 2 trend lines and above the bullish ascending triangle around $6800, we should have enough momentum to break the previous $6839 high set on 22 September and price should reach $7037 at 1.272 fib using Fibonacci retracement with a possible extension to 1.424 fib at $7140.
Bitfinex being the most bullish exchange is conducting a 2 hour maintenance today so set alerts and take precaution.
Happy trading and good luck!
Previous analysis:
We have 2 trend lines acting as strong resistance, the purple trend line which connects the peaks on 24 July, 4 September and 28 September and the orange trend line connecting the peaks on 05 May and 24 July. Once we break through these 2 trend lines and above the bullish ascending triangle around $6800, we should have enough momentum to break the previous $6839 high set on 22 September and price should reach $7037 at 1.272 fib using Fibonacci retracement with a possible extension to 1.424 fib at $7140.
Bitfinex being the most bullish exchange is conducting a 2 hour maintenance today so set alerts and take precaution.
Happy trading and good luck!
Previous analysis:
Comment:
Bullish flag forming on the lower time frames.
