$BTC closed today above 8 EMA for the second time and it looks like it is gaining some momentum. However, as damage was done on the monthly and weekly, a recovery also needs to be confirmed on these time frames. Let’s look from the different angles.
Musings:
- For an established trend, the price needs to close at least above 20 EMA, better above 200 MA. These lines, ~40000 and ~41500 would be strong resistance.
- From the candles perspective, the next step is to clear the weekly barrier. If Saturday closes above 40750, it would make a bullish engulfing and I would expect at least one week of higher prices.
- The weekly technical indicators (chart below) does not seem to support a reversal yet. However, there are two more days and some changes could happen.
- The triangles/pennants that I shared before are not broken yet for BTC and ETH. Worth watching as well.
As soon as a triangle/pennant boundary is broken through, we would have a direction, at least for a short term. So far, a significant bearish pressure from the monthly and weekly frames.
- If the triangle is broken up, the next target zone – 39000-41000.
- If the triangle is broken down, min target – 25000-20000, then 9000.
In summary, I am waiting for Saturday’s closure to provide more clarity about the longer term direction.
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Latest $BTC Weekly:
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