BTCUSD Decision Point
Updated
Btc has been in a neutral symmetrical triangle pattern with a downwards bias for the past few weeks with declining volume due to the holiday season.
The time for a decision point is very near - an increase in volume is needed for confirmation of either a trend reversal or a price breakdown.
But so far volume indicators are starting to paint a bullish picture.
This is currently my long-term trade plan if price does breakdown; I will scale in buys starting from 11k down to 8k with a SL at 6.9k.
Position will be scaled down accordingly starting from 20k with an exit goal of 25k.
Alternatively I will need to see a strong price breakout at 17.3k to be confidently bullish
Positions can be scaled in starting from a price breakout of 15.7k.
The time for a decision point is very near - an increase in volume is needed for confirmation of either a trend reversal or a price breakdown.
But so far volume indicators are starting to paint a bullish picture.
This is currently my long-term trade plan if price does breakdown; I will scale in buys starting from 11k down to 8k with a SL at 6.9k.
Position will be scaled down accordingly starting from 20k with an exit goal of 25k.
Alternatively I will need to see a strong price breakout at 17.3k to be confidently bullish
Positions can be scaled in starting from a price breakout of 15.7k.
Note
Resistance has became support; btc is favouring the bulls atm so long as it maintains above that resistance level for the next few days. Breakout of 16k will confidently bring the ball back into the bulls favour At 17.3k breakout we should look towards a new ATH again.Note
Trade now activated; this chart details some of my thoughts of the current price action.A hard break with significant volume below the long-term 68% fib retracement would result in a very spooky scenario for btc.
Note
Bitcoin is likely to trade within the range of 8k-15k for a few weeks.Sentiment wise is at an all time low - an optimal scenario for bitcoin now is a rally to 16k and consolidate for a few weeks. A bad scenario would be a rally above 16k; failing to break ATHs kickstarting a bear market. The worst case scenario but provides a healthy correction would be a high momentum bounce once price touches 12.2k today and proceed onwards to the major support region outlined in the screenshot posted yesterday. Floor for a bearish cycle is likely to be around 5k but I doubt prices will fall below 7.5k.
Be very careful these next few days as Bitcoin loves to shakeout multiple times before an actual trend reversal.
Note
Levels to watch out for.
Note
BTC in chop city.
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