BTC getting pinched into decision!
Today was a slightly better day from a technical standpoint, as the price has bounced off very strongly off the support created in the pennant formation. This sign still doesn't mean we are out of the dark yet as we are still within a bearish pennant. The price is over 70% through the current formation which represents a solid movement is due soon as well as another level of confluence which is pinching this decision to happen sooner than later.
As you can see the current long term daily golden pocket sits right above the current price and as time continues the price pinches between the formation and the pocket leading to a forced decision in a direction it chooses to go. From analyzing the current situation it seems more likely that the price is going to break out for a couple reasons.
The formation we are currently in theoretically is a bearish formation which is a valid reason to make such assumptions YET, a couple more points of confluence have to be presented in order to increase the confidence in the potential trade that will be placed.
1) Golden pocket: depending on which side of the pocket the price lays predicts the direction it will be rebounded from. Therefore it is clear that the pocket can be seen as a bearish signal as we reside below the pocket and will eventually bounce off OR potentially break through as the markets could turn bullish from a fundamental standpoint and the narrative could shift, but for now my prediction stays with a bearish view on the short term.
2) MACD: This point of confluence is both bearish and bullish signal as you can see we have diverged and are heading down, but the last 2 candles of the MACD are the same length which also shows as a sign of weakness from the bears. Are the bulls finally fighting back? Time will tell.
3) RSI: Currently the RSI is not a in any way looking bearish as we are very underextended and over sold, whereas we have neared the 30 level which is a very strong buy in area. Today we have bounced from 34 to 41 and will most likely consolidate on the RSI up until the price bottoms out and the fear in the market begins to cool off.
As you can see my confluences discussed above can be interpreted in both a bearish and bullish manner and that's what makes it a bit tricky as we find ourselves in this consolidation area nearing the end of a theoretically bearish formation, yet it seems possible that there is a chance it could break to the bulls as well. We are living through some interesting times.
I appreciate all the positive energy I have received from those who have taken the time to read my articles. I am extremely passionate about what I do and don't plan on ever stopping what I do. Any advise on the topic of growth in this field would be most appreciated.
#notfinancialadvise ;)
As you can see the current long term daily golden pocket sits right above the current price and as time continues the price pinches between the formation and the pocket leading to a forced decision in a direction it chooses to go. From analyzing the current situation it seems more likely that the price is going to break out for a couple reasons.
The formation we are currently in theoretically is a bearish formation which is a valid reason to make such assumptions YET, a couple more points of confluence have to be presented in order to increase the confidence in the potential trade that will be placed.
1) Golden pocket: depending on which side of the pocket the price lays predicts the direction it will be rebounded from. Therefore it is clear that the pocket can be seen as a bearish signal as we reside below the pocket and will eventually bounce off OR potentially break through as the markets could turn bullish from a fundamental standpoint and the narrative could shift, but for now my prediction stays with a bearish view on the short term.
2) MACD: This point of confluence is both bearish and bullish signal as you can see we have diverged and are heading down, but the last 2 candles of the MACD are the same length which also shows as a sign of weakness from the bears. Are the bulls finally fighting back? Time will tell.
3) RSI: Currently the RSI is not a in any way looking bearish as we are very underextended and over sold, whereas we have neared the 30 level which is a very strong buy in area. Today we have bounced from 34 to 41 and will most likely consolidate on the RSI up until the price bottoms out and the fear in the market begins to cool off.
As you can see my confluences discussed above can be interpreted in both a bearish and bullish manner and that's what makes it a bit tricky as we find ourselves in this consolidation area nearing the end of a theoretically bearish formation, yet it seems possible that there is a chance it could break to the bulls as well. We are living through some interesting times.
I appreciate all the positive energy I have received from those who have taken the time to read my articles. I am extremely passionate about what I do and don't plan on ever stopping what I do. Any advise on the topic of growth in this field would be most appreciated.
#notfinancialadvise ;)
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