Hello,
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 bullish pennant formation yesterday and seems to be forming another small bullish pennant formation right above the last one. This can almost be seen as one big continuation of the first pennant. If we look at the combined heights of the pennant 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 volume indicators as we breach the bearish trend line at $11,500. If volume 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 volume, it would smell to me like a bull trap/rising wedge just above the downtrend. Alternatively, the price may consolidate along the 200 EMA before making its next move. This would be a good sign and would further support the theory of a large bullish pennant breakout to $13,500. Of course we can also witness strong resistance at the 200 EMA and bearish trend line, 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
Mobsta.
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 bullish pennant formation yesterday and seems to be forming another small bullish pennant formation right above the last one. This can almost be seen as one big continuation of the first pennant. If we look at the combined heights of the pennant 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 volume indicators as we breach the bearish trend line at $11,500. If volume 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 volume, it would smell to me like a bull trap/rising wedge just above the downtrend. Alternatively, the price may consolidate along the 200 EMA before making its next move. This would be a good sign and would further support the theory of a large bullish pennant breakout to $13,500. Of course we can also witness strong resistance at the 200 EMA and bearish trend line, 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
Mobsta.