Trend Analysis:
Bitcoin broke out of the symmetrical triangle pattern and almost touched the $10,800 mark before retracting back to $10,400. This looks like a typical cup and handle formation. This could take the price to $11,500 if it follows a similar pattern as cup and handle formations do.
Also, this pattern looks like a bull flag which is also good news because it could send the price up to $11,500 as well. Either way, this trend looks pretty promising. We may see the price establish a short term downward trend before we see it pop again, so don't get too nervous if the price decreases a bit.
If the price goes below the $10,000 mark, then it would be time to get a bit scared as the current trend didn't have the proper support behind it.
Technical notes:
The RSI is clearly in the overbought range and seems to be making it way down out of the range. This is normal for a retraction like this one. The volume is decreasing as well and this usually happens before a big shift in momentum. The EMA(20) is currently under the current price, so this means that Bitcoin is still showing signs of positive growth.
Conclusion:
Wait for a big break out after this downward trend that could take us up to $11,500. If the price breaks down to $10,000 it may mean that this was just a quick pump and we could be heading even lower.
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Happy trading!
Bitcoin broke out of the symmetrical triangle pattern and almost touched the $10,800 mark before retracting back to $10,400. This looks like a typical cup and handle formation. This could take the price to $11,500 if it follows a similar pattern as cup and handle formations do.
Also, this pattern looks like a bull flag which is also good news because it could send the price up to $11,500 as well. Either way, this trend looks pretty promising. We may see the price establish a short term downward trend before we see it pop again, so don't get too nervous if the price decreases a bit.
If the price goes below the $10,000 mark, then it would be time to get a bit scared as the current trend didn't have the proper support behind it.
Technical notes:
The RSI is clearly in the overbought range and seems to be making it way down out of the range. This is normal for a retraction like this one. The volume is decreasing as well and this usually happens before a big shift in momentum. The EMA(20) is currently under the current price, so this means that Bitcoin is still showing signs of positive growth.
Conclusion:
Wait for a big break out after this downward trend that could take us up to $11,500. If the price breaks down to $10,000 it may mean that this was just a quick pump and we could be heading even lower.
Follow me on Twitter for more TA!
Happy trading!
