BTC - *Update* Did Confirm Breakout
This post is an update to our previous post. 2 days ago we pointed out how BTC had not confirmed a breakout (by closing a daily candle above 25.2k). Today we can say BTC HAS closed a daily candle above 25.2k confirming the resistance there has been broken. Please keep in mind this does not immediately mean to go long, but does show us that our uptrend should be beginning.
Here in this chart there are a few things to pay attention to. Btc's megaphone pattern, 1.618, liquidity regions, and our rsi.
Lets begin with our megaphone pattern. We have been pointing out BTC's parallel cannel (that has now been broken) but if you connect the wicks we can identity a megaphone pattern. This is shown with our green a red arrows drawn in the chart. Megaphone patterns are generally bullish patterns upon breakouts. The unlikely, but still possible chance would be a fall to around 18.5k (bottom of megaphone) before the true bull really begins. I think this is unlikely due to other developments in the chart, but still something to keep on your radar.
The next thing we should examine is the 1.618 of our retracement from 25.2k to 19.5k. This puts our 1.618 level at $28.850 which is an EXTREMELY important level and could be one of the main regions we face strong resistance during this breakout rally.
The third thing would be our liquidity regions which is in confluence with our 1.618. This ranges between $28.6-29.3k. Since it was old support it is likely to at first act as new resistance/ a supply zone for selling.
The final takeaway would be our RSI. On the daily right now we are at overbought conditions. If we do start seeing a selloff and our RSI not able to break the last high at 25.2k this would create a bearish divergence.
In conclusion, BTC has shown massive strength and has confirmed a break from our resistance level at 25.2k. Our current target to watch is $28,850. There are some signs of weakness starting to show, but overall more bullish than bearish. Happy trading.
Here in this chart there are a few things to pay attention to. Btc's megaphone pattern, 1.618, liquidity regions, and our rsi.
Lets begin with our megaphone pattern. We have been pointing out BTC's parallel cannel (that has now been broken) but if you connect the wicks we can identity a megaphone pattern. This is shown with our green a red arrows drawn in the chart. Megaphone patterns are generally bullish patterns upon breakouts. The unlikely, but still possible chance would be a fall to around 18.5k (bottom of megaphone) before the true bull really begins. I think this is unlikely due to other developments in the chart, but still something to keep on your radar.
The next thing we should examine is the 1.618 of our retracement from 25.2k to 19.5k. This puts our 1.618 level at $28.850 which is an EXTREMELY important level and could be one of the main regions we face strong resistance during this breakout rally.
The third thing would be our liquidity regions which is in confluence with our 1.618. This ranges between $28.6-29.3k. Since it was old support it is likely to at first act as new resistance/ a supply zone for selling.
The final takeaway would be our RSI. On the daily right now we are at overbought conditions. If we do start seeing a selloff and our RSI not able to break the last high at 25.2k this would create a bearish divergence.
In conclusion, BTC has shown massive strength and has confirmed a break from our resistance level at 25.2k. Our current target to watch is $28,850. There are some signs of weakness starting to show, but overall more bullish than bearish. Happy trading.
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