BTCUSD Hammers out of key support zone, follows through with Three White Soldiers
Things are looking up folks: BTCUSD bears were rejected above 7000 on Sunday, as pair rallied out of a key support zone, printing a Bullish Hammer reversal candle. This rally was quite impressive, with pair bouncing just shy of 1000 points low to close. The follow through we've had since was even more impressive though - bulls followed up with two more solid up-days, yielding a multi-candle reversal pattern - Three White Soldiers:
We finished Wednesday slightly lower, but this was to be expected after a solid three-day rally in the days prior. Pair is trading higher above 9000 early Thursday, with bulls consolidating below the 23.6 Fib at 9280. I'm looking for a break above there over the coming sessions and this would target the wedge top below 11500.
Initial support is yesterday's low of 8750, with further support below there at 8600 and key support in the 7000-7700 zone. I remain bullish above there, though it is important to note the width and height of the current wedge formation - we could easily trade sideways until August in a shrinking 4500 point range:
Nice analysis, it will be great to see a bullish trend sooner though. Good one @bulleth
I very much doubt we consolidate til August, though the possibility is there :)
Thanks for the analysis... I need to remember to view it w daily candles more often
Yep you can get a bit lost in the lower timeframes and distracted by noise - higher time frame is king :)
great illustration. thanks for the update man.