The wedge is tightening on BTC and a second test of 9000-9200 resistance is possibly coming up. There are two scenarios as I see it:
1. A bearish smaller wedge is forming, reaching to test 9000-9200 resistance, also around a weekly resistance that is strong. Today is sunday so a close below can show us testing of the previous support levels at 8000-8500.
2. An ascending triangle is forming, reaching the same resistance level and breaking it to test a new swing high.
For me, the first scenario is more likely. There is certainly less trading going on after seeing a rally with very few pauses.
A look at the daily RSI shows us that it is still above the previous resistance around 60-62, but the 4 hr RSI is in a risky zone for a long trade. Volume is slightly declining which could imply that a big move is coming up. The shorts are getting lower than when the first rally ocurred. A break below the 200 EMA should let BTC breathe for a while. For me it is still a no-trade zone.
Key levels: 200 EMA daily: 8700, 50 EMA daily: 8300 (Remember that the short term support ends at 8000 so this level should show bull's determination.)
1. A bearish smaller wedge is forming, reaching to test 9000-9200 resistance, also around a weekly resistance that is strong. Today is sunday so a close below can show us testing of the previous support levels at 8000-8500.
2. An ascending triangle is forming, reaching the same resistance level and breaking it to test a new swing high.
For me, the first scenario is more likely. There is certainly less trading going on after seeing a rally with very few pauses.
A look at the daily RSI shows us that it is still above the previous resistance around 60-62, but the 4 hr RSI is in a risky zone for a long trade. Volume is slightly declining which could imply that a big move is coming up. The shorts are getting lower than when the first rally ocurred. A break below the 200 EMA should let BTC breathe for a while. For me it is still a no-trade zone.
Key levels: 200 EMA daily: 8700, 50 EMA daily: 8300 (Remember that the short term support ends at 8000 so this level should show bull's determination.)
Note
BTC is movinsideways inside the bigger wedge. The smaller formation is more and more starting to look like a ascending triangle. If price doesnt break below 8700 in the coming days, this will be very bullish!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.