I think in the coming days we’ll get our first big indication as to whether BTC is in a new uptrend or if this has been a false breakout.
The trend in BTC breakouts of the past has been to make the breakout. Make a retest. Then boom off the retest. Often leaving wicks off the retest.
The recent fall we’ve seen in BTC has brought it into this retest area. The decision made here I think will be important.
Using simple price action analysis on the daily chart we have an implied big decision coming soon.
The initial sell off looks really bearish. We have a big bull candle formed now. If this can continue higher it will form a good bull signal but in the instances we see these types of bull candles form and then break at this stage in a possible reversal, they’re often signs of a reversal.
Potential for a lot of momentum on either side of this break but if the bear break is made and it turns out a big weekly chart false breakout has been made it’d be a really brutal move to the downside. This would seem to be a credible threat if the current lows break (In anything other than fast spike low).
Simple PA gives us strong indications a big decision is coming. Let’s use other things to plan how these moves would usually look and points to trade in them.
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