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Bitcoin is currently breaking down from the triangle consolidation structure. But is this a bearish breakout for Bitcoin?

14 days ago

Bitcoin is currently breaking down from the triangle consolidation structure.

But is this a bearish breakout for Bitcoin?

I don't think so but it is a bit more complex than that. Let's take a look into what is going underneath.

Trend and Momentum

From a trend perspective it is clear that it has been marking down very consistently despite of a few days of sideway consolidation.

But price is now finally printing a new low and in the process we can see a slowdown in terms of momentum captured by the RSI. We can observe a small divergence in late May and we are probably in the processed of creating a major bullish divergence between mid May and mid June.

We are at a technical support level Volumes are also declining strongly. To me this implies that there isn't enough sellers and sooner or later price need to test highs to recapture more liquidity.

Down bellow, I will cover some Futures and orderbook analysis.

D7R

Published 14 days ago

Latest Longs v Shorts and a useful trick... by D7R paid