Hello Traders, here is my analysis for BTCUSD.
Another day has past and really nothing has changed with BTC over the past 24 hours. BTC is still trading within the same range that I spoke about in my post yesterday, so the same technical analysis still applies.
**There has been one new development to keep an eye on, and that is the triangle formation that BTC has formed.
- I first noticed it a couple days ago, but at the time I couldn't tell whether BTC was trading within the Support & Resistance zone or if it was now trading within the triangle formation.
- It's quite clear that it's definitely trading within the triangle formation now...
So what does this mean from a technical standpoint?
- This means a breakout (or Breakdown) is inevitable in the coming days.
- As you can see price is becoming wedged, smaller and smaller in this formation until eventually the pattern breaks.
- Similar to Support & Resistance, whichever way price breaks will signal a strong buying or selling presence towards that direction.
- This will give us a good idea of what BTC's following move will be.
- If price breaks the triangle to the upside = BTC is short term Bullish
- If price breaks to the downside = BTC is short term Bearish
***I measured from today to where the triangle meets and there is only 3 days to that point. That means a move should happen within 3 days.
What happens next if BTC breaks the Triangle to the upside?
- If BTC breaks the triangle to the upside, that is very positive in the short term for BTC.
- I would expect BTC next to target resistance at $31.4K
- It's possible that the excitement and momentum from BTC breaking the triangle will be enough to help BTC finally break resistance at $31.4K
- If $31.4K is broken the next target will be $33K.
***Remember, the more times a support or resistance level is hit the weaker it gets. Just imagine that you are trying to break through a wall with a sledgehammer, you're probably not going to be able to knock it down the first few hits. But after 4 or 5 hits the wall becomes very weak and finally breaks.
Thats it for todays analysis, thanks everyone and best of luck trading!
Another day has past and really nothing has changed with BTC over the past 24 hours. BTC is still trading within the same range that I spoke about in my post yesterday, so the same technical analysis still applies.
**There has been one new development to keep an eye on, and that is the triangle formation that BTC has formed.
- I first noticed it a couple days ago, but at the time I couldn't tell whether BTC was trading within the Support & Resistance zone or if it was now trading within the triangle formation.
- It's quite clear that it's definitely trading within the triangle formation now...
So what does this mean from a technical standpoint?
- This means a breakout (or Breakdown) is inevitable in the coming days.
- As you can see price is becoming wedged, smaller and smaller in this formation until eventually the pattern breaks.
- Similar to Support & Resistance, whichever way price breaks will signal a strong buying or selling presence towards that direction.
- This will give us a good idea of what BTC's following move will be.
- If price breaks the triangle to the upside = BTC is short term Bullish
- If price breaks to the downside = BTC is short term Bearish
***I measured from today to where the triangle meets and there is only 3 days to that point. That means a move should happen within 3 days.
What happens next if BTC breaks the Triangle to the upside?
- If BTC breaks the triangle to the upside, that is very positive in the short term for BTC.
- I would expect BTC next to target resistance at $31.4K
- It's possible that the excitement and momentum from BTC breaking the triangle will be enough to help BTC finally break resistance at $31.4K
- If $31.4K is broken the next target will be $33K.
***Remember, the more times a support or resistance level is hit the weaker it gets. Just imagine that you are trying to break through a wall with a sledgehammer, you're probably not going to be able to knock it down the first few hits. But after 4 or 5 hits the wall becomes very weak and finally breaks.
Thats it for todays analysis, thanks everyone and best of luck trading!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.