BTCUSD Ascending Channel Pattern

BTCUSD has been in an ascending channel pattern with trade opportunities within the pattern at the bottoms and tops of the channel. Take note that the 4-hour RSI shows bearish divergence as shown in this chart:

Beware of fakeout from the top of the channel and possibly wait for confirmation candle on at least the 4-hrly which retraces from breakout and bounces off the top of the channel to confirm support before putting in a long trade on the breakout. Target for bullish breakout 54000-55000 and target for bearish breakdown 42200-44200 depending on when breakout happens.

There are some alt coins that have formed bull flag patterns and could be coiling up for a significant bullish break to the upside as long as bitcoin does not have a big downward move and remains in this consolidation pattern. The only major negative point is the bearish divergence but could be compensated with a strong bull run which we are having which could mean a smaller correction before a move up to breakout to new highs.

Just sharing an observation. Trade only what you can afford to lose and what you won't lose sleep over!

Happy trading!

Comment:

BTCUSD has strongly broken the upper ascending channel line and is currently howering around 51000+ area. There is a possibility for a minor correction before continuation as long as the 1hrly and 4hrly price candles keep closing above the upper ascending channel line. The next 4hrly close is in about an hour time. If the candle closes above the line with that good bounce it had then it is looking good to head to around 54000 - 55000.

If it breaks the line then we can also look out for a bounce on a new upward trending ascending channel of a bottom of above 49000 in price. Look out for a bounce in this price point if it breaks the previous ascending channel top currently around 50000.

Just sharing an observation based on the previous chart discussion.

Good luck!