BTC - bounce before the drop
BTC looks ready to complete a short term bounce before dropping to 4000 (see attached chart for long term view).
SMAs are showing good compression at the apex of a triangle pattern which could send price back up to the downtrend resistance line. The triangle has broken down twice, each time to be supported by the support zone at 6400. This suggests that this zone is strong and should bring price above resistance.
The volume profile indicates a point of control ( POC ) at 6500 - a breakout above this price could provide the energy to move towards the target.
The height of the triangle when placed at the support level of 6400 indicates a potential target at 7200, which would intersect with the resistance line in 2 days. The volume profile also suggests 7200 to be a significant level.
Entry < 6425
Stop: 6347
Target: 7177
SMAs are showing good compression at the apex of a triangle pattern which could send price back up to the downtrend resistance line. The triangle has broken down twice, each time to be supported by the support zone at 6400. This suggests that this zone is strong and should bring price above resistance.
The volume profile indicates a point of control ( POC ) at 6500 - a breakout above this price could provide the energy to move towards the target.
The height of the triangle when placed at the support level of 6400 indicates a potential target at 7200, which would intersect with the resistance line in 2 days. The volume profile also suggests 7200 to be a significant level.
Entry < 6425
Stop: 6347
Target: 7177
Trade active
Trade closed: stop reached
Note
Target still viable despite stop hitBull flag forming around POC on indicator cluster
Note
BTC looks ready to break above 7000, which should bring some optimism back into the market. I don't expect this to last too long, though. We should see resistance around 7100-7200, before we continue the bear trend towards the 4000-5000 target.
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