Caution: Bitcoin still following pattern from May
I wouldn't try to use a pattern like this to make trading decisions, but it does provide some perspective when normal technical analysis is not clear on a direction. If anything this is telling me to be cautious with longs for the next few days. The momentum oscillators are are also signaling some near future downside, but price action has not confirmed. Right now the price is consolidating in a triangle pattern. My bias is that it will break to the downside (counter to the uptrend) in the next couple of days, possibly tonight when CMEs open. A 12H close below 11,500 would confirm a move down for me. Target would be $11,100-10,900. Not looking for shorts, but to get long as the higher time frames are still very bullish. Any candle closes below that $11.1-10.9k range would prompt me to exit any longs taken from that level, as it would indicate a deep retracement, as low as the mid to low nine thousands is my guess. Might see bounces at 10.5k, 10k and 9.7k on the way down. $9,600-9,800 would fill the CME gap, so could get a strong bounce there. I would still be somewhat bullish and looking for a long at those levels. A 12H close below 9.3k would tell me to exit longs or look for a bounce to short.
One thing to note is how the CMEs close today. The 3D closes today and so does the weekly. A weekly close below 11.5k would not look good and I would wait to see what the stock market and crypto does on Monday during normal trading hours. If the S&P500 heads to new all time highs on the daily crypto should continue to pump along with it. Forward looking or not, all markets seem to be in an irrational bubble and that might include crypto, so I'm being cautious. When the guy at work starts getting real excited about crypto I get real defensive with my trades.
***not trading or financial advice. I'm just sharing my ideas and what I'm considering doing based on price behavior***
One thing to note is how the CMEs close today. The 3D closes today and so does the weekly. A weekly close below 11.5k would not look good and I would wait to see what the stock market and crypto does on Monday during normal trading hours. If the S&P500 heads to new all time highs on the daily crypto should continue to pump along with it. Forward looking or not, all markets seem to be in an irrational bubble and that might include crypto, so I'm being cautious. When the guy at work starts getting real excited about crypto I get real defensive with my trades.
***not trading or financial advice. I'm just sharing my ideas and what I'm considering doing based on price behavior***
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