$BTC keeps forming a huge triangle - Breakout?
Key Levels
Short term
Supports -> S1: 9,900 & S2: 9,300
Resistances -> R1: 10,900 & R2: 11,700
Medium/long term
Supports -> S3: 8,800 & S4: 8,000
Resistances -> R3: 12,300 & R4: 13,000
Potential Scenario
Following up with last week´s analysis, the Bitcoin keeps bouncing on the lower line of the triangle that has been forming for 2 months already.
Usually, triangles break heavily up or downwards when they are almost completed. The one in the chart is putting a lot of pressure on the lower part, and it could have more chances to break it downward.
If we finally have a downward movement of the price, we expect a retracements to around $8,500, which is a large demand zone.
TA Comment
Last week we talked about automating the indicator Percent Change to open trades once the price went above a specific percentage (usually above resistance).
Today we are going to check the DMI. Why? The DMI helps you to pinpoint when the positive trends are more present than negative ones.
Since the price is currently testing and bouncing on the lower part of the triangle, it can open trades with a very nice timing.
Pattern
As we argued in the last post, the price is forming a big triangle that is likely to move sharply up or down once it is completed. Within this triangle, it is possible to spot other patterns that can represent buy and sell points.
The pattern Harami Bullish has been recently spotted by the system. It is is a bullish reversal pattern represented by 2 candles. The first candle is a decreasing candle with long body, followed by a small increasing candle within the range of the previous one.
Short term
Supports -> S1: 9,900 & S2: 9,300
Resistances -> R1: 10,900 & R2: 11,700
Medium/long term
Supports -> S3: 8,800 & S4: 8,000
Resistances -> R3: 12,300 & R4: 13,000
Potential Scenario
Following up with last week´s analysis, the Bitcoin keeps bouncing on the lower line of the triangle that has been forming for 2 months already.
Usually, triangles break heavily up or downwards when they are almost completed. The one in the chart is putting a lot of pressure on the lower part, and it could have more chances to break it downward.
If we finally have a downward movement of the price, we expect a retracements to around $8,500, which is a large demand zone.
TA Comment
Last week we talked about automating the indicator Percent Change to open trades once the price went above a specific percentage (usually above resistance).
Today we are going to check the DMI. Why? The DMI helps you to pinpoint when the positive trends are more present than negative ones.
Since the price is currently testing and bouncing on the lower part of the triangle, it can open trades with a very nice timing.
Pattern
As we argued in the last post, the price is forming a big triangle that is likely to move sharply up or down once it is completed. Within this triangle, it is possible to spot other patterns that can represent buy and sell points.
The pattern Harami Bullish has been recently spotted by the system. It is is a bullish reversal pattern represented by 2 candles. The first candle is a decreasing candle with long body, followed by a small increasing candle within the range of the previous one.
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