ZECBTC | APEX | Symmetrical Triangle | Volatility Contraction Todays Analysis- ZECBTC – trading within a symmetrical triangle as it nears the apex.
Points to consider:
- Volatility Contracting (apex)
- Consolidating above range median
- 100 EMA (dynamic Resistance)
- Declining Volume
- RSI above 50
- Stochastics overextended
As ZECBTC consolidates above range median, volatility is contracting as price coils into its apex where a break in either direction is probable.
Historically, price has failed to break above the 100 EMA, thus another rejection upon re-test is probable. However, body candle closes/consolidation above this dynamic resistance is very bullish.
Volume is clearly declining and currently below average, indicative of volatility expansion being imminent. A break in either direction needs to be backed by increasing volume to solidify legitimacy.
RSI trading above 50, establishing consecutive higher lows showing increasing strength in the immediate market. Stochastic RSI currently overbought, however, this oscillator may remain overextended for a prolonged period.
Overall, In my opinion, a long trade will be validated upon a successful S/R flip of the 100 EMA.
What are your thoughts? Let me know in the comments below!
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As always,
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