Bitcoin is consolidating in the 39k-41k range, forming what appears to be a diamond pattern. As the move into the diamond was up, it is more likely that price will break up from the diamond (of course, that doesn't mean a break down from the diamond isn't possible, just less likely). If price does break up from the diamond, then the technical target from that breakout is at 43K. This is huge not only because that would be a $3000 dollar move in the Bitcoin price, but also because that would put Bitcoin's price above the high of the range that we've been stuck in since the crash from 65K to 30K. The low of that range was around 29-30K and the high of that range was 40-42K. So by hitting 43K, price would be breaking above the 40-42K range high, thus likely starting a new bullish run after having spent such a long time in consolidation. Of course, we have to track this one step at a time, starting from first getting a confirmed breakout up from the diamond pattern.
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@watchtrend, pleasure. Let’s see if we can get breakout confirmation
ProToCooL
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Sorry but isn't this diamond pattern bearish in this scenario... when you additionally include the bearish divergence on the 4H and 1H and perhaps the hidden bearish that's forming on the daily ?
cryptotraderog
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@ProToCooL, that’s also possible as I mentioned in the post. Which is why I’m waiting for the breakout confirmation. I trade confirmations not personal biases. If we get a break to the downside, I will short just as I will long if we break to the upside. We need to separate bull/bear bias vs. actual long/short trade entries.
Mihai_Iacob
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Best post!Thanks a lot
cryptotraderog
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@OptimoomFX, thanks my man. Still waiting for the break