BTCUSD The next big move?
TL:DR - Price action is giving mixed signals, I will not take any more profits until price gets near 9k, looking to buy between $7200 and $7000.
This is the BTCUSD chart with 1 day candles. As is tradition Bitcoin has rocketed higher without the slightest hint of a pullback, merely a few days pause. The 2nd Inverse Head and Shoulders I pointed as a possibility is now invalid. With BTC priced at $8250 as I write price has hit the maximum target of the now fully completed head and shoulders pattern. To me, buying at $6000 in late June was a no brainer but now we are faced with dueling patterns.
On the Bullish side price has broken out from the GINORMOUS double bottom formation AND the descending triangle going back to early February. I would like to see price close well above the downward red trendline over the next 2 days to say it has truly broken the descending triangle but so far price action looks promising. Descending triangles are typically bearish patterns so breaking out of it in a bullish way is a good sign. Lastly, volume has finally picked up after months of decline. For any bull run to be real it needs to be on strong volume.
On the Bearish side we are running into multiple area of resistance. As I said at the start, the current price level at $8250 is the maximum price target based off of the inverse H&S pattern. It is also very close to $8400 which is the 0.618 fib retrace from the previous move (price has already tested and temporarily moved away from this level). Further, RSI is above 70 indicating BTC is overbought. We haven't seen RSI this high since late December and we all know how buyers there fared.
In summary, short term price action has turned bullish while medium term price action is still bearish (but for how much longer?). For entertainment purposes if you're planning to invest long term (>6 months) I still think this is a good buying opportunity. In the short and mid term I am neutral and will let the market decide what to do. I still have a fair deal of cash from selling at $7350 that I will use to buy on any pullback, specifically looking for buying opportunities between $7200 and $7000.
***This is not investing advice. I am not an investing professional. Do not invest what you cannot afford to lose. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
This is the BTCUSD chart with 1 day candles. As is tradition Bitcoin has rocketed higher without the slightest hint of a pullback, merely a few days pause. The 2nd Inverse Head and Shoulders I pointed as a possibility is now invalid. With BTC priced at $8250 as I write price has hit the maximum target of the now fully completed head and shoulders pattern. To me, buying at $6000 in late June was a no brainer but now we are faced with dueling patterns.
On the Bullish side price has broken out from the GINORMOUS double bottom formation AND the descending triangle going back to early February. I would like to see price close well above the downward red trendline over the next 2 days to say it has truly broken the descending triangle but so far price action looks promising. Descending triangles are typically bearish patterns so breaking out of it in a bullish way is a good sign. Lastly, volume has finally picked up after months of decline. For any bull run to be real it needs to be on strong volume.
On the Bearish side we are running into multiple area of resistance. As I said at the start, the current price level at $8250 is the maximum price target based off of the inverse H&S pattern. It is also very close to $8400 which is the 0.618 fib retrace from the previous move (price has already tested and temporarily moved away from this level). Further, RSI is above 70 indicating BTC is overbought. We haven't seen RSI this high since late December and we all know how buyers there fared.
In summary, short term price action has turned bullish while medium term price action is still bearish (but for how much longer?). For entertainment purposes if you're planning to invest long term (>6 months) I still think this is a good buying opportunity. In the short and mid term I am neutral and will let the market decide what to do. I still have a fair deal of cash from selling at $7350 that I will use to buy on any pullback, specifically looking for buying opportunities between $7200 and $7000.
***This is not investing advice. I am not an investing professional. Do not invest what you cannot afford to lose. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
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