BTCUSD: Shallow Retrace Hints At Break Out To 7500.

BTCUSD update: Price is hesitating just under the bearish trend line that has been established since early August. While at the same time, the bullish trend line is also still intact. Which way is it more likely to go?

In my recent Bitcoin article on S.C., I explained the increasing risk of retrace as price pushed into the 7Ks. There is no reason to buy into a high, but there are occasional exceptions.

The previous candle has closed as a pin bar. By doing this, price managed to maintain the bullish trend line. This is a sign of strength and a likely continuation pattern similar to an inside bar.

When a market sells off it usually happens fast. The fact that price is holding up certainly supports the bullish argument. It may also be the result of the coming holiday in the U.S. which often unfolds with lighter volume across all major markets.

In summary, if the current structure holds, this market is poised to break higher. The trade would certainly be an aggressive one, and those details will be shared with our members.

We are not one to buy highs, but shallow pullbacks are an attempt to retrace. If the market can't retrace, it is saying that the bulls still maintain control. The 7500 area is a reasonable expectation if a continuation break out occurs. A close below the bullish trend line will negate this scenario. Begin with the idea and then let the market choose to validate it or not.