BITCOIN Close to a break-out. Trade the direction.

21 jul 2020

This is a short-term update on Bitcoin's price action. I illustrate all the dominant patterns that are involved since the early May top formation.

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** The Channel Up **
As you see within this Rectangle (blue) consolidation since early May, the pattern that is still holding is the (black) Channel Up. Formed of two perfect Higher High (red arrows) touches and almost successive (since June 27) Higher Lows.


** The Channel Down **
Since the June 01 (10450) High though, the price action turned downwards within a Channel Down (blue) without having made a new Higher High. As you see on the chart the Channel Down held up until it met the Higher High trend-line of the wider Channel Up, which gave a push upwards and finally broke the Channel Down today (circle).


** The Triangle **
This Channel Down break-out is not yet a bullish reversal signal. As you see the price remains within the (orange) Triangle, below the 9480 Resistance.


** The LMACD **
This is where the LMACD comes into play. As you see, it has been within a Triangle of its own since early May as well. And at the moment it is very close to a break-out. If the 9480 Resistance breaks, that will most likely coincide with the upward break-out of LMACD's Triangle. It is best to wait for confirmation from the LMACD and then commit to a trade.

In my opinion whichever way it breaks, that will be the direction for the next month. It is therefore best to patiently wait for the right moment. Do you agree or you think there is a direction already on the chart? Feel free to share your work and let me know in the comments section!

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