Today I'd like to highlight a few BTC triangle patterns that we have seen play out before. We are looking at the break out from two previous consolidation triangles so that we can compare these to the current price action. As you can see previously price has broken to the upside (even though we are looking at descending triangles). Importantly confirmation has come from RSI, OBV and the ADX.
1. RSI Div - This is rising and has broken the previous downtrend, however it has not yet crossed the 50 line and therefore we should remain cautious.
2. OBV - looks good and has crossed over into the green indicating that currently we have position buying pressure.
3. ADX - this does not give me confidence in the current move up. We need to see that green histogram moving up and crossing the red.
In summary BTC price is looking stronger and moving in the right direction, but right at this time I'm waiting for more evidence that the bulls can maintain this push. At the moment there is still a reasonable chance it could turn back down. I'll be entering as soon as I see RSI Div cross up above the 50 line, and that ADX needs to seriously close the gap between the red and green. I would be happy starting to take smaller long positions if I see either of these two things happen.
1. RSI Div - This is rising and has broken the previous downtrend, however it has not yet crossed the 50 line and therefore we should remain cautious.
2. OBV - looks good and has crossed over into the green indicating that currently we have position buying pressure.
3. ADX - this does not give me confidence in the current move up. We need to see that green histogram moving up and crossing the red.
In summary BTC price is looking stronger and moving in the right direction, but right at this time I'm waiting for more evidence that the bulls can maintain this push. At the moment there is still a reasonable chance it could turn back down. I'll be entering as soon as I see RSI Div cross up above the 50 line, and that ADX needs to seriously close the gap between the red and green. I would be happy starting to take smaller long positions if I see either of these two things happen.
