BTCUSD - [4H] Edging breakout but still within resistance zone
On this chart, I have outlined in purple a major reactionary zone for BTCUSD over the last few months. You can see this zone initially acted as support but is now acting a major resistance zone.
You can also see BTC is trading inside a bearish expanding triangle. RSI shows bearish divergence on this pattern.
Bull view - On the 4H, BTCUSD has broken out of this zone for the first time since July. This may act as a continuation, especially if buyer volume increases or BTCUSD breaks out of the expanding triangle. A breakout here could push prices back to ATH / upper resistance zone indicated on this chart with the white horizontal line. A confirmation breakout here may be a safe entry for a swing up.
Two reasonable stop locations would be just below the purple reaction zone OR extending below the expanding triangle.
Bear view - Purple zone has provided resistance multiple times and the expanding triangle gives more resistance for the swing.
BTCUSD is trading above the reactionary zone but has yet to confirm a breakout candle above said zone.
Buyer volume as well as overall volume is mediocre at this time.
You can also see BTC is trading inside a bearish expanding triangle. RSI shows bearish divergence on this pattern.
Bull view - On the 4H, BTCUSD has broken out of this zone for the first time since July. This may act as a continuation, especially if buyer volume increases or BTCUSD breaks out of the expanding triangle. A breakout here could push prices back to ATH / upper resistance zone indicated on this chart with the white horizontal line. A confirmation breakout here may be a safe entry for a swing up.
Two reasonable stop locations would be just below the purple reaction zone OR extending below the expanding triangle.
Bear view - Purple zone has provided resistance multiple times and the expanding triangle gives more resistance for the swing.
BTCUSD is trading above the reactionary zone but has yet to confirm a breakout candle above said zone.
Buyer volume as well as overall volume is mediocre at this time.
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