Touched Important Level & Patterns Remain BullishTraders,
Just a quick little update here. I pointed out this bullish triangle in a previous post. I had suspected we had one more small drop to 28,500-28,800 before any sort of breakout OR breakdown. So far, neither of the latter has occurred yet, but we have hit my support marked price level. That's great. Also positive is that we remain above this support and inside a bullish patterns both on the price and RSI chart. We will soon exit in one direction or another, however, probability suggest a move to the upside.
Also positive is that our SPY chart remains in the breakout area. Until this changes, I don't grow concerned but remain bullishly biased.
A few negatives to consider:
* We have not retested that descending trendline from Dec. '21. Though, we don't have to, it is a movement that usually occurs. The question then becomes, "When?" One possibility is a break to the upside of my triangle, a hit of that 31,600 level, and then a drop. If this occurs, an "M" pattern will have formed which would likely lead us down for that retest.
* Another item to always keep in the back of your head is that we do have a gap on the Bitcoin CME Futures chart from the 10th of March 2023 at around 20k. Sooner or later more than 90% of all gaps are filled. If we stay above my neckline at 25,200, I don't expect that GAP to be filled this year. If we drop below it however, all bets are off.
Watch these items closely or better yet, stay tuned into my channel and I'll try to update you as best as possible.
Best,
Stew
