Hello Traders,
Welcome back to another update, this time on BTC, The Calm Before The Storm!
Bitcoin has been trading within a very tight range coming into its apex within the macro descending triangle formation.
Usually this is a bearish formation, however coming from a very strong impulse move up, we can literally break either direction…
Points to consider at current given time
- Price approaching apex within descending triangle
- Volume decreasing noticeably
- Major support at $9300 - $9200 area (green zone)
- Major resistance at $11,400 to $11,600 area, also in confluence with .50 Fibonacci
- EMA’s currently neutral
- RSI itself also approaching apex
- Stochs neutral and testing its own resistance
It is quite obvious that the volatility will be coming back into Bitcoin after trading in this range for some time now. This structure has been putting in lower highs over the past couple months after a crazy impulse move up from the bear market earlier this year. Bitcoin has also established a strong base of support, which has been tested multiple times, we must remember, the more times a level is tested the more it’s prone to break…
Bitcoin right now is testing a smaller uptrend within the descending triangle where it is bound to break. We have a local resistance that needs to break, if not then this can be a potential triple top. To test this level, Bitcoin would have broken the major downwards trending line, changing the macro trend and putting a higher low, this need to be confirmed with increasing bull volume.
The .50 Fibonacci is a strong resistance area as Bitcoin has had multiple rejections, break this area (Red Zone), will put in a higher high in the macro trend, which is quite bullish. If Bitcoin fails to break bullish from current apex, then the probability of testing support will be much greater, this time it’s more likely to give way as support has been tested multiple times. A break from this area will be quite bearish as this will confirm yet another macro lower high and also hold the descending formation true.
EMA’s are quite neutral at current given time as price is trading within in, we can’t really establish if its given price any support or resistance…
The RSI is looking interesting, we can see that its respecting its downwards trend, coming closer to its apex and with a break in either direction can determine which way Bitcoin will break. Similarly, the Stochastics are neutral, however a break from or a rejection from its local resistance will also help determine which way bitcoin breaks...
Overall, it’s just a matter of time for an impulsive move to come to fruition, Bitcoin has been trading range bounce for a while now coming into its major apex, and we can expect a break within the next couple days!
What are your thoughts on Bitcoin price action? Will it break bullish or bearish?
Please leave a like and comment
And remember,
“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas
Welcome back to another update, this time on BTC, The Calm Before The Storm!
Bitcoin has been trading within a very tight range coming into its apex within the macro descending triangle formation.
Usually this is a bearish formation, however coming from a very strong impulse move up, we can literally break either direction…
Points to consider at current given time
- Price approaching apex within descending triangle
- Volume decreasing noticeably
- Major support at $9300 - $9200 area (green zone)
- Major resistance at $11,400 to $11,600 area, also in confluence with .50 Fibonacci
- EMA’s currently neutral
- RSI itself also approaching apex
- Stochs neutral and testing its own resistance
It is quite obvious that the volatility will be coming back into Bitcoin after trading in this range for some time now. This structure has been putting in lower highs over the past couple months after a crazy impulse move up from the bear market earlier this year. Bitcoin has also established a strong base of support, which has been tested multiple times, we must remember, the more times a level is tested the more it’s prone to break…
Bitcoin right now is testing a smaller uptrend within the descending triangle where it is bound to break. We have a local resistance that needs to break, if not then this can be a potential triple top. To test this level, Bitcoin would have broken the major downwards trending line, changing the macro trend and putting a higher low, this need to be confirmed with increasing bull volume.
The .50 Fibonacci is a strong resistance area as Bitcoin has had multiple rejections, break this area (Red Zone), will put in a higher high in the macro trend, which is quite bullish. If Bitcoin fails to break bullish from current apex, then the probability of testing support will be much greater, this time it’s more likely to give way as support has been tested multiple times. A break from this area will be quite bearish as this will confirm yet another macro lower high and also hold the descending formation true.
EMA’s are quite neutral at current given time as price is trading within in, we can’t really establish if its given price any support or resistance…
The RSI is looking interesting, we can see that its respecting its downwards trend, coming closer to its apex and with a break in either direction can determine which way Bitcoin will break. Similarly, the Stochastics are neutral, however a break from or a rejection from its local resistance will also help determine which way bitcoin breaks...
Overall, it’s just a matter of time for an impulsive move to come to fruition, Bitcoin has been trading range bounce for a while now coming into its major apex, and we can expect a break within the next couple days!
What are your thoughts on Bitcoin price action? Will it break bullish or bearish?
Please leave a like and comment
And remember,
“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas
