As you can see BTC seems to want to challenge the overall downtrend established on Dec. 17th. At this point, we have not breached these levels in 2 months. Bitcoin broke out of a formation yesterday and seems to be forming another small formation right above the last one. This can almost be seen as one big continuation of the first . If we look at the combined heights of the formations and add them to the top of the flag pole, we can see that a move to $13,500 is feasible.
Adding to your position at these levels is tricky because as we have already seen some strong upside. Look for indicators as we breach the at $11,500. If picks up and we crush it through, a buy between here and $11,500 would be a good deal. If we have a weak breakout of the down trend on low , it would smell to me like a bull trap/rising just above the downtrend. Alternatively, the price may consolidate along the 200 before making its next move. This would be a good sign and would further support the theory of a large breakout to $13,500. Of course we can also witness strong resistance at the 200 and , which could push prices back under $10,000 temporarily. For now, the longer that we stay between $10k-$11k, the more momentum we build for a possible strong break to the upside, and therefore the more appealing a zone it becomes for buying.
Take it EZ