steemit.com/cryptocu...at-you-need-to-watch
As I have charted, I clearly believe BTC is in a falling wedge consolidation pattern. We had a brutal fakeout yesterday morning flirting below the 13k neckline however if you were paying attention you would have noticed volume to the downside was never decisive and we managed to make a higher low with both price action and MACD histogram.
Not only that but OBV never broke the long term slow uptrend giving many signals combined that BTC was not yet in the danger zone.
So where do we go from here?
As you can see, 4 hour BTC is trading above the past two resistance trend lines which simply put show that it is slowly picking itself up during this consolidation period.
Indicators here are also telling us something..
MACD tightening up, signaling we're preparing for a big move
MACD histogram curling up and creating higher lows corresponding with higher lows on price action
Volume still tailing off which is what we'd like to see during positive consolidation levels
OBV maintaining a slow uptrend
Stochastic RSI accurately telling us local bottoms and tops, look for this to maintain a prolonged extreme level when BTC decides on a direction.
So what do we look for going from here?
**Confirmation - We'll know that BTC is in full on breakout mode to prior highs and beyond (likely well into the 20k range) if/when BTC obtains a 4 hour close above the upper resistance trend line around 16.5k on good volume
**Failure - failure on this consolidation period leading to a trend reversal would likely be evident if/when BTC has a 4 hour close below the lower support trend line around about 12,400
Until one of these scenarios is confirmed I lean towards BTC bouncing around in it's current range
Not financial advice.
As I have charted, I clearly believe BTC is in a falling wedge consolidation pattern. We had a brutal fakeout yesterday morning flirting below the 13k neckline however if you were paying attention you would have noticed volume to the downside was never decisive and we managed to make a higher low with both price action and MACD histogram.
Not only that but OBV never broke the long term slow uptrend giving many signals combined that BTC was not yet in the danger zone.
So where do we go from here?
As you can see, 4 hour BTC is trading above the past two resistance trend lines which simply put show that it is slowly picking itself up during this consolidation period.
Indicators here are also telling us something..
MACD tightening up, signaling we're preparing for a big move
MACD histogram curling up and creating higher lows corresponding with higher lows on price action
Volume still tailing off which is what we'd like to see during positive consolidation levels
OBV maintaining a slow uptrend
Stochastic RSI accurately telling us local bottoms and tops, look for this to maintain a prolonged extreme level when BTC decides on a direction.
So what do we look for going from here?
**Confirmation - We'll know that BTC is in full on breakout mode to prior highs and beyond (likely well into the 20k range) if/when BTC obtains a 4 hour close above the upper resistance trend line around 16.5k on good volume
**Failure - failure on this consolidation period leading to a trend reversal would likely be evident if/when BTC has a 4 hour close below the lower support trend line around about 12,400
Until one of these scenarios is confirmed I lean towards BTC bouncing around in it's current range
Not financial advice.