Good morning, here is my purely technical short term view on the Bitcoin USdollar market.
There is a lot of bullish news for Bitcoin as well as bearish, long term we all know that the prices should continue going up through our lifetime. With all that said here is my short term view.
After hitting a new ATH at $6140 (Bitstamp) the market started correcting itself with a sharp drop down to about $5600 where the market responded and pushed the prices back up to the $5900 mark.
We have a few conflicting chart patterns which seems to be the norm these days on BTCUSD. I drew in the inverted cup and handle and then the fan shows us breaking out of the short term channels.
Look towards 6100 -6200 to signal the breakout to what would be a new ATH. I have alerts set up for $6100, $6140 and $6200. When these prices get hit there is a strong possibility for a breakout trade long.
On the flip side if the RSI does not gain some strength $5600 – $5800 should get tested once again. If there is a lot of selling volume present I would consider jumping into a quick short.
Be sure to ask us if you have any questions about this analysis. Safe trades.