This is not Financial advice: Do not trade or invest based on this analysis.
Price
Following from yesterday's review (here) the BTC price is slowly approaching the $12,000 mark. I expect to see some signficant resistance beginning at $11,800 (the red zone marked on the chart):
This also represents the neckline area for the possible inverted head and shoulders pattern.
I would like to see BTC consolidate around these price levels for a bit longer (perhaps forming a triangle), rather than simply breaking through the resistance zone. This would establish a stronger base for a bull run and symmetry for the inverted head and shoulders patter to complete, validating the price target of $17,000.
The short term price action has been subdued in terms of volatility, which isn't necessarily a bad sign for the upside scenario.
Volume
The volume is in a low period (<6k Bitfinex 4hr) and usually comes back with a bang, so keep an eye out for that. I suspect it'll happen in the next three to five days.
The On-Balance-Volume indicator isn't signalling much other than overall indecisiveness by the Market participants (i.e. accumulation and disaccumulation is flatly balanced).
Bias
I would like to see some further price consolidation between $10,000 and $12,000, but I suspect we'll see some dramatic price action if the price convincingly breaks into the overhead resistance zone, which might lead to some whipsawing in price.
My Bias remains to the long side.
Until tomorrow,
Bobby.