Bitcoin trading in a possible continuation pattern?

Bitcoin trading in a possible continuation pattern?

Happy Tuesday, thanks for stopping by and checking out our latest analysis and analysis video. Today our focus is on Bitcoin’s 4H chart.

Looking at the 4H, we can see that Bitcoin has made the first leg higher, breaking the last lower fast trend and moving above the moving averages. Since that break higher, we have seen the market move into consolidation. The pattern we can see on the 4H is an ascending triangle pattern.

These patterns are generally seen as continuation patterns when they are sitting in up legs or up trends. From here, it is all up to buyers. Can they confirm the pattern with a new break higher?

If we do see a confirmed breakout, we will be looking to see if buyers can test 22,700 resistance. If buyer momentum really carries forward past 22,700, we would then be looking at 28,500 – 31,000 to come in as resistance possibly.

But before we get too far ahead of ourselves, let’s see if bitcoin buyers can first confirm the pattern and get back up to 22,700! If sellers set a new close below 20,100, we will start doubting buyer strength.

Bitcoin 4H chart

Bitcoin 4H analysis (powered by TradingView) 

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Joseph Jeffriess, Market Analyst in Eightcap
Eightcap is one of the leading CFD brokers in the market, providing online trading services to a wide range of clients from around the world. They offer 1,000+ CFDs based on Forex, commodities, indices, shares, and cryptocurrencies. The well-established trading company was founded in Melbourne, Australia, in 2009, and is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities Commission of The Bahamas (SCB).