Looking into BTCUSD as a proxy for cryptocurrencies, it’s recent stall over a number of weeks appeared dangerously bearish as it typically “drops off a cliff” style following low volatility consolidation for weeks. This time however, the consolidation was relatively muted and this week appears to have a potential spark in the pan. Earlier in the month, the expectation published did not manifest, and consolidated in a low volatility range instead... until this week.
Still early days as BTCUSD has about 24 hours before closing the current weekly candle, nonetheless, there appears to be some worthy potential to note...
The daily chart (not shown here) broke out of a minor trendline with some momentum during the week, and is pushing towards the multi-year triangle resistance. This appears to be a very nascent bull trend start, with technicals slightly biased in support. The system is still holding a valid Buy signal, MACD is still in bullish territory, price is above the 55EMA, which is also trending upwards, and the week has an increase in price and volume.
The bull case for Bitcoin here is to break above the longer term trendline resistances decisively, particularly out of the triangle. This should be accompanied by higher volumes as well as higher highs to maintain above 10,750 (monthly chart resistance). In an ideal case, this has a projected upside for 26,000 by Jan 2022 (marked out in chart for the record).
The bear case for Bitcoin is yet another failed breakout attempt, followed by a breakdown below 8700, bouncing off 6,500 for consolidation within a large 1,000 range.
Overall, there is a slight bullish bias on Bitcoin - for now; otherwise, neutral.
Note: white arrow denotes the latest live entry point taken.
Still early days as BTCUSD has about 24 hours before closing the current weekly candle, nonetheless, there appears to be some worthy potential to note...
The daily chart (not shown here) broke out of a minor trendline with some momentum during the week, and is pushing towards the multi-year triangle resistance. This appears to be a very nascent bull trend start, with technicals slightly biased in support. The system is still holding a valid Buy signal, MACD is still in bullish territory, price is above the 55EMA, which is also trending upwards, and the week has an increase in price and volume.
The bull case for Bitcoin here is to break above the longer term trendline resistances decisively, particularly out of the triangle. This should be accompanied by higher volumes as well as higher highs to maintain above 10,750 (monthly chart resistance). In an ideal case, this has a projected upside for 26,000 by Jan 2022 (marked out in chart for the record).
The bear case for Bitcoin is yet another failed breakout attempt, followed by a breakdown below 8700, bouncing off 6,500 for consolidation within a large 1,000 range.
Overall, there is a slight bullish bias on Bitcoin - for now; otherwise, neutral.
Note: white arrow denotes the latest live entry point taken.
