BTC – looking at latest structure, price action is consolidating between two pivots , forming a triangle. Yesterday intro to volatile moves is thus being squeezed together, which will result in a break out – which way it will go, it’s still under question. But general feel of the market is that we should see a bullish break out here.
What to watch out for?
Of course, breaking the triangle is important, but it could be a fake out to catch liquidity. So really important points are marked with red lines – $38k and $39,2k. Either of them being broken now, it marks the next structure of the market. Below is still a support line of last lower-low at $37,4k. Dipping one more time there, could form double bottom structure if we bounce from it, but breaking through to downside would confirm bearish trend staying in effect.
Rising above current resistance and setting a new higher-high would go a long way in setting new bullish trend . It’ll give bulls more hope and strength to start buying massively. Challenge ahead is above $40,3k level, which is a heavy resistance zone for now. Breaking that would be heavily bullish .
RSI and MACD are very consolidated – right at the center lines, signaling that current balance of power is right in the middle and break out is imminent.