Short-term analysis of #Bitcoin on the H6 timeframe:

For several months #BTC was trading inside a bear flag which has finally broken to the downside.
However, Bitcoin remains strong and the bearish breakout was not as harsh as expected.
BTC is currently trading inside a bullish wedge which has in general a probability for a breakout to the upside of approximately 67%.

There are several reason why I think that in this case the probability for a bullish outbreak is high in this case:
– Stochastic RSI is turning bullish and is moving above the 20 level
(note: the StochRSI also looks quite bullish on the 2D TF!)
– Bullish crossover on the Wave Trend oscillator
– on the H4/H6 timeframes we can see a strong bullish divergence on the MACD
– the #Crypto Fear & Greed index is at very low levels and holds its support 20

In addition to this we can see that the bullish momentum on the DXY seems to be exhausted on the H6 timeframe which means that there will be a short-term correction in the DXY .
A correction of the DXY is a further bullish signal for crypto as well as for stock markets.

Take profit targets:
TP1@ $40600
TP2@ $42690
(note: strong resistance between $43k – $45k)

Disclaimer!
We (Asset-Ethology) are not a financial adviser. For educational purpose only!
You can use the information from the post to make your own trading decisions.
Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.