In this purely pattern-based analysis, I highlight the areas of importance for bitcoin to enter for either a bearish or bullish run. Based on the descending triangle that appears to be forming and the overbought condition of the market, I think a stop in the strong support area of $228-232 is probable if the blue support line breaks.
Conversely, a break of the most recent high, noted by the thin blue line, would open up to higher highs in the immediate future. As long as we do not break the most recent high, this is technically still a descending triangle. I repeat: triangles are not invalidated by crossing the sloped line, but by taking out a significant recent high!
I've already taken a small short position from $253, but there still haven't been any ace setups yet. This is just an intermediary play while waiting for the real action to occur. Longer term trendlines are still intact and we have to see which one breaks first before we can make a decision on when to expect a big move in the market.
Conversely, a break of the most recent high, noted by the thin blue line, would open up to higher highs in the immediate future. As long as we do not break the most recent high, this is technically still a descending triangle. I repeat: triangles are not invalidated by crossing the sloped line, but by taking out a significant recent high!
I've already taken a small short position from $253, but there still haven't been any ace setups yet. This is just an intermediary play while waiting for the real action to occur. Longer term trendlines are still intact and we have to see which one breaks first before we can make a decision on when to expect a big move in the market.