Looking at our trend timeframe we can see BTC has remained in a major downtrend since our bull run in 2017. Price action has since been respecting a descending triangle pattern with a lower high at $11,500. Followed by another lower high at $10,170, however price action did leave a higher low $5,400 closing above our previous low at $3,500. Left shift over to our more recent price action to get a better picture of our resistance and support levels.
Taking a closer look at our trend timeframe we see Bitcoin was recently in an ascending pennant before breaking out from $7,700 as high as retesting resistance at $10,000. Stochastic RSI showing momentum remains in favor of the bulls however we have slowed down. Price action has been stuck in a range from $8,700 to $9,700 for the past 8 weeks, its only a matter of time before we breakout or breakdown. The world is under a lot of tension, the people feel scared and unsure. Everyone is looking for their safe haven as things only start to get worse. In the midst of all of this Paypal announced it will starting incorporating Bitcoin on its platform.
Shifting to our pattern timeframe we get a better picture of BTC respecting the pendant pattern followed by the breakout and retest. Stochastic RSI showing momentum is in favor of the bulls with no signs of slowing down. Our most recent daily candle was a bullish engulfing off our channel support and pendant resistance which is now supported. This is a good sign we will continue the upside and retest our channel resistance at $10,250.
Finally, look at the trigger timeframe we see BTC seems to have found 4hour support off $9,600. A bullish engulfing at this level is a good sign we will continue to the upside. Stochastic RSI showing long term momentum in favor of the bulls, however short term we are slowing down. Let's not forget indicators rely on price action to get their data, expecting a higher low of momentum at this level and BTC to continue to the upside with an engulfing 4hour. A rejection from this level and expect a sell-off.
