BitcoinUpdated BTC, Next Stop $8k
I've been studying a LOT lately, a lot being relative because I am working on the other side of the world and away from home. SO I've just gotten through a lot of the basic formations and what I'm seeing is a rectangle pattern that has formed. IF I am correct, I suspect that the continuation (being equal to the leg that it started on) will end us up to about 8k.
From there I would expect retracement. Now back to my studies!
Let me know what you guys think :)
From there I would expect retracement. Now back to my studies!
Let me know what you guys think :)
Note
So, I've added some lines here to help out with this update...I looked closer at the 60M Chart... and I've provided imagery to help describe what I'm seeing.
SO, as I've been studying patterns, I have learned that within a rectangle or 'ranging' consolidation, once the breakout is completed the dominating (preceding) price movement should diminish in volume through completion of the formation.
Aka in a bullish trend buying volume should EXPLODE and then as the formation begins to build, buyers should be showing less and less presence before they pop back in at the breakout.
So lets take this into my original rectangle. First, I looked closer and within the 60M Chart I noticed it was technically two rectangles or "Bart' formations. NOW, take your eyes to the white lines on the volume. On the first breakout, volume had a sliiiiight increase towards the middle but really dropped off after that before the breakout. Now on the second volume pushed up all the way almost to 75% of the way through the formation and then followed with a big drop.
As far as price action goes I'm going to guess that AB=CD still on the reversal, so I'm thinking prices should drop to the trendline at 7500 and then a bounce off that.
Note
However keep in mind those EMAs as well. This bounce may be limited and then return south if/when we get rejected at the 50EMA
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