Taking a quick look at the Bitcoin market versus the US Dollar after BTCUSD price failed to break above the $6500 – $6400 resistance zone towards the end of last month. Im using the 30 min candle chart to illustrate the shorter term possibilities.
As you can see from the chart above, the price action failed to rejoin the previous bearish trend (purple line), instead it bounced on the 31 st of October from $6200, to back over $6300, painting a nice bullish pennant / flag on the shorter time frame.
The RSI is also painting a bullish signal on the shorter time frame, which will be inviting the day traders and higher risk players to bet on a breakout. I usually look to the bullish side as well as the bear, in this scenario, I think that the Bitcoin bulls have built their floor around $6200 – $6300, and I will look for these levels to fail before going short on the market.
A break above this flag should push prices towards $6400 – $6500, however if the bulls don’t step up with the buying volume we could see the RSI dipping below 50 and price action following suite.
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