Hey guys, yet another quick update on BTC. As you can see we have tried to break support twice, once being rejected, and secondly we broke through, but quickly dropped pretty hard after that.
We're at a critical stage here, with the previous candle closing right at the resistance, so if we want to turn this into support we need to see that 4hr candle close above the resistance! Looking likely as we're near the end of the 4hr close, but that does not confirm anything.
It's a similar story on the 1hr chart (below)
We saw a breakout of the channel, which to me was a fakeout. My definition of this is simple, there are enough sell orders set so the bears just pushed it straight back down to lower support after we breached resistance. Then the buyers filled their orders when it hit support.
You gotta remember that everyone is looking at the same chart, which is why it's so powerful, but that means that others see opportunity when you don't.
In terms of going forward, if we can close the 1H and 4H candles above this line, we could be changing the momentum to a more bullish trend. However, I still am not convinced we are out of our down trend.
I want to see more indicators showing a change in momentum, buying pressure etc. and I'm just not seeing it. It looks like we may start and try and form another wedge or triangle pattern as we squeeze the price into a tighter range, meaning that we may come to a head in the upcoming days, or maybe Monday when the weekend is over.
Monday is also my birthday, I'll be 30! So what a way to celebrate my own downtrend by seeing a big bullish breakout for Bitcoin! :D (haha I just realised the alliteration, BBBB. It'll be trending on twitter in no time!)
I look forward to a more in depth post on Monday where we can talk about future projections in price actions, and I'll maybe disclose my BTC projection for January 1st 2019 :)
Peace.
- B