BTC is looking very constructive after its rally to almost 14k. It is currently forming a bullish pattern, either a pennant or a flag and this if broken to the upside can mean a possible test of the prior highs or a break above it.
I will be using 12475 as a strong level to judge whether to go more long, as BTC could just break out of the trend line and hit 12475 and create a double top or a lower high. Be very careful to not jump in too early...
Similarly, if BTC breaks to the downside my first targets will be 9500 and 8500 (there is still a CME gap at 8500ish).
- If BTC closes below the 21 Yellow EMA that would also be a very obvious signal for downside as it hasn't closed below it since early June.
- 9600 is a key price as well, because if BTC closes a 4H or above, below that price then it would be very likely to see lower targets.
Stay neutral until a key area is confirmed broken, and also be mindful that even if the downwards trendline is broken, 12475 is still resistance.
I will be using 12475 as a strong level to judge whether to go more long, as BTC could just break out of the trend line and hit 12475 and create a double top or a lower high. Be very careful to not jump in too early...
Similarly, if BTC breaks to the downside my first targets will be 9500 and 8500 (there is still a CME gap at 8500ish).
- If BTC closes below the 21 Yellow EMA that would also be a very obvious signal for downside as it hasn't closed below it since early June.
- 9600 is a key price as well, because if BTC closes a 4H or above, below that price then it would be very likely to see lower targets.
Stay neutral until a key area is confirmed broken, and also be mindful that even if the downwards trendline is broken, 12475 is still resistance.
