The price has been making higher lows inside a consolidation (trading range) for a few days now.
Major trend in BTC is still down, but we do have a local uptrend since 6100.
These types of consolidations inside a local uptrend are more likely to break out to the upside.
The higher lows inside a range are a sign of accumulation (supply drying up, demand increasing slowly)
From the classical charting perspective, this is known as an ascending triangle. It indicates what I described above.
Targets (based on the resistance levels along the way) are:
1. 6778
2. 6874
3. 6929
4. 7044
5. 7144
6. 7286 (maximum projected target of the pattern)
The price may get rejected at any of the targets mentioned above, so it's always a good idea to lock in partial profits at each of the targets as they get reached.
The invalidation of this entire move will be a daily candle close below 6330 pivot (key) point.
Measuring Risk/Reward ratio based on this pattern, it would be slightly over 1:3 (taking 6295 as a stop loss and 7286 as a max target).
Major trend in BTC is still down, but we do have a local uptrend since 6100.
These types of consolidations inside a local uptrend are more likely to break out to the upside.
The higher lows inside a range are a sign of accumulation (supply drying up, demand increasing slowly)
From the classical charting perspective, this is known as an ascending triangle. It indicates what I described above.
Targets (based on the resistance levels along the way) are:
1. 6778
2. 6874
3. 6929
4. 7044
5. 7144
6. 7286 (maximum projected target of the pattern)
The price may get rejected at any of the targets mentioned above, so it's always a good idea to lock in partial profits at each of the targets as they get reached.
The invalidation of this entire move will be a daily candle close below 6330 pivot (key) point.
Measuring Risk/Reward ratio based on this pattern, it would be slightly over 1:3 (taking 6295 as a stop loss and 7286 as a max target).
Comment:
This is a more zoomed in chart (with shorter term targets) I posted in my channel two hours ago right before the panic sell candle happened.
Comment:
The ascending triangle in the main chart is no longer valid.
However, the trade has not been invalidated unless we see a daily candle close below 6330.
So far, this is still in a support zone and is more likely to bounce from here than to break it.
Below 6330, the door opens towards 6100 and possibly even lower to 5850.
Therefore, 6330 is the pivot point, and as long as the price stays above it, everything is just an attractive buying opportunity at a local support level with a great Risk/Reward ratio.
However, the trade has not been invalidated unless we see a daily candle close below 6330.
So far, this is still in a support zone and is more likely to bounce from here than to break it.
Below 6330, the door opens towards 6100 and possibly even lower to 5850.
Therefore, 6330 is the pivot point, and as long as the price stays above it, everything is just an attractive buying opportunity at a local support level with a great Risk/Reward ratio.
Comment:
The buy zone posted in my previous update worked out very well.
If you want to take a closer look at what's happening right now, bearish action inside bullish larger picture, you might want to take a look at this live chart I posted in my channel yesterday:
If you want to take a closer look at what's happening right now, bearish action inside bullish larger picture, you might want to take a look at this live chart I posted in my channel yesterday:
