BTC price is pretty close to where we started last Monday which I find funny because it was actually a pretty volatile week with Bitcoin running up on Thanksgiving only to dump the next day as deep as $53.6k. In came a bullish inside bar after that and here we are on the 3rd green day in a row and sitting at $58.6 which is basically last Monday’s open.
Full Chart Image: https://www.tradingview.com/x/1uijux4v/
Location
-We appear to be stuck in a descending wedge or perhaps a bull flag and heading up into resistance of both those patterns. A bullish breakout here suggests the patterns are valid and that price is heading higher.
-Bigger picture are we in megaphone? Yes
-Structure after bearish downtrend line? Not yet
-Trendline Apex location off September $53k high is an interesting location
-Moving averages still crossed bearish but appear to be narrowing.
Volume
-Bears tried to step up in earnest but didn’t take out old highs. Bulls have not really stepped up either.
Indicators
-Have the bear divs played out yet? Not really
-OBV looks really weak but is threatening to break out to upside
-Are there any new daily bullish divs? Technically MACD has a bull div but it’s weak and I’d like -to see a better structural W.
-RSI has not gotten oversold. It is below 50 line and no W.
Market Structure
-Inside bar after dump and now 3 straight green days up to top of bull flag. No W yet.
Conclusion
Currently watching the potential descending wedge breakout but at resistance now and cautious of another dip back down. If the wedge breaks out after consolidation and strong volume then longs could be considered. If the pattern fails then $53k still stands out as strong support and will be looking for long opportunities there.
Happy Trading!
