Breaking News / Bitcoin / Analytics
Bitcoin (BTC) is about to make its next big move as the volume has been on a steady decline for the past few weeks. In the next few days we are going to see a big breakout but what traders want to know is whether this breakout will be to the upside or the downside. For a while now we have been discussing how BTC/USD is heavily overbought on major time frames and it is long overdue for a pullback. That being said, we have never discounted the possibility of a move to the upside before it eventually comes down. A lot of other traders and analysts have made calls for a rally to $10,000 first before the price comes crashing down. That rally is still possible but its probability has now decreased and in this analysis we will discuss how and why.
The 4H chart for BTC/USD shows that the price broke the bullish pennant but failed to breakout. It is reasonable to say now that this bull pennant was in fact a bull trap. A lot of people expected it to break to the upside towards $10,000 but that is not what we see. What we see is that BTC/USD broke out of this pennant and then started sliding around the top of the pennant as it did not have the momentum to rally higher. That being said, it still possible that the whales might spark some more interest by printing a few green candles to the upside to trap in more bulls. However, the probability of this rallying extending to $10,000 is now very low. Since last week, there have been a lot of posts on possible bear cases seen on different forums.