Hello my fellow cryptonauts. Normally i stay as an observer to crypto content but i decided i might give my 2 sense today. As you can see on the 4 hour, RSI
momentum recently put in a double bottom
and may soon breakout. We have also just completed a move higher and are currently in bullish
triangle consolidation. Bullish
triangles have a 70 to 80 % chance to break bullishly so given a confirmed break of the 8250 resistance i wouldn't be surprised to see the price start an AB=CD
trend continuation pattern and move upwards towards the 9800 area. The 9800 area corresponds with the objective of the trend continuation pattern that would be started on the break of 8250, the 38.2 fib on the larger time frame, as well as previous highs in the market, so it would make sense that if the market breaks out from 8250 , we would be headed to the 9800 area next.
Given a stab up into the 9800 area , we will have traders that will be taking profits at their trend continuation objectives, traders who will be shorting the 38.2 fib and traders that will be shorting against previous resistance . That being said, the price may only briefly explore into the 9800 before coming back down. On the Daily that push higher will also likely start to build a bearish
divergence on macd
. That being said , I would be leaning short after reaching the 9800 area.
As always, stick to your trading plans, stay on your toes, manage your risk, and make sure you can come back to play the game again tomorrow!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***