Btc currently playing between the middle and upper fib levels now as it has traded over and thus far bucked the short term downtrend.
4 hour close above the former downtrend was decisive in my opinion and BTC now looks like it is in clear consolidation from the prior 20k run as it continues to reject the 12.5k area low.
Technical Indicators are favoring the upside as of now..
1. RSI trending up
2. MACD 4 hour showing bullish divergence
3. OBV clear divergence at the low 2 days ago and trending up ever since
4. Volume shows momentum for the bulls
What does this mean in the overall picture?
We will likely play around in this range until bulls are able to take full control. This consolidation period can last a lot longer than I think most people expect as I would like to see volume taper off more before a direction is shown. The current period shows momentum favoring the bulls but volume signals some indecision.
Confirmation to the huge breakout would be a 4 hour close above the 16.5k area. We would likely see well into the 20k range if that were to occur. But the timeframe for this could be much longer than I think most people expect.
Of course bears can still take control, but momentum has shifted in my opinion. As always I'll include how to know if immense downside is coming -
Confirmation to downside - a 4 hour close below the 13k neckline will likely put us in a full failure reversal from this consolidation.
From a traders standpoint this is still a no trade zone, choppy markets are an account killer.
4 hour close above the former downtrend was decisive in my opinion and BTC now looks like it is in clear consolidation from the prior 20k run as it continues to reject the 12.5k area low.
Technical Indicators are favoring the upside as of now..
1. RSI trending up
2. MACD 4 hour showing bullish divergence
3. OBV clear divergence at the low 2 days ago and trending up ever since
4. Volume shows momentum for the bulls
What does this mean in the overall picture?
We will likely play around in this range until bulls are able to take full control. This consolidation period can last a lot longer than I think most people expect as I would like to see volume taper off more before a direction is shown. The current period shows momentum favoring the bulls but volume signals some indecision.
Confirmation to the huge breakout would be a 4 hour close above the 16.5k area. We would likely see well into the 20k range if that were to occur. But the timeframe for this could be much longer than I think most people expect.
Of course bears can still take control, but momentum has shifted in my opinion. As always I'll include how to know if immense downside is coming -
Confirmation to downside - a 4 hour close below the 13k neckline will likely put us in a full failure reversal from this consolidation.
From a traders standpoint this is still a no trade zone, choppy markets are an account killer.