Monday, July 8, 2019
A major contracting triangle is forming. Will a breakout follow?
Current support/resistance: $10'800/$11'600
Both on the 4 hours candles and the daily candles we see bullish formations (bullish tenant and flag). While this does not guarantee an upward move, those patterns have repeated many times through history and it is more likely to see a breakout to the top. Furthermore, with more and more people trading using that kind of formations, they become self-realizing.
On the opposite, if we do not see the upside break, the price might decline abruptly to $10'800 and if this support is broken we could potentially go to levels under $10'000.
We are still slightly above the 20 days moving average, and the MACD are converging. The RSI is at a healthy level again due to the consolidation we had, there is now room to grow.
The analysis is based on the latest close price (00:00 UTC time, daily basis)
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