BTC Break to the upside? Or the calm before The Storm.
Again, a simplistic chart with a poignant message. Bitcoin on the 4 hourly is rather interesting, as we see the 50MA holding up and starting to curl to the upside, with the 200 MA curtailing down. A sure bullish signal is when we see the 50 MA cross-over the 200 MA and hold. I would like to think the Pennant, which is a fractal derived from trend lines and fib levels, will conform to the moving averages. A push to the upside, with a break out of the pennant and moving averages crossing over, is a LONG trade. We could however see that happening, but instead of breaking out, touching the top of the pennant and breaking to the down side, where it continues its bearish sentiment.
The top of the pennant is important as its angle triangulates to the previous high of $10,000 which saw a rejection down to $8,585 (approx), and this is validated via a trend line which touches the following highs, which thus far have been lower highs. SO this is a critical and pivotal area of isolation to allow for the facilitation of whether to go LONG.
I can also see how price is equally likely to get rejected, especially with the halving and fundamentals which we need to consider, such as news and the recent coronavirus outbreak.
This will be very choppy waters I have no doubt, I am posting this as neatural as there is not enough to be as definitive as possible with respect to conveying a long or short.
However, I am highly confident in this pennant/fractal, and while one can trade within the fractal, it is more, from my experience, profitable with less risk and more reward when trading the big swings or breakouts/breakdowns.
Good luck
The top of the pennant is important as its angle triangulates to the previous high of $10,000 which saw a rejection down to $8,585 (approx), and this is validated via a trend line which touches the following highs, which thus far have been lower highs. SO this is a critical and pivotal area of isolation to allow for the facilitation of whether to go LONG.
I can also see how price is equally likely to get rejected, especially with the halving and fundamentals which we need to consider, such as news and the recent coronavirus outbreak.
This will be very choppy waters I have no doubt, I am posting this as neatural as there is not enough to be as definitive as possible with respect to conveying a long or short.
However, I am highly confident in this pennant/fractal, and while one can trade within the fractal, it is more, from my experience, profitable with less risk and more reward when trading the big swings or breakouts/breakdowns.
Good luck