Bitcoin Technicals Now Locked Into A Battle; Go Higher Or Breakdown To Scary Price Points

Bitcoin maintains higher levels of trading as it goes into Thursday morning (US CST*) trading and giveback has been little to none. As the mid-scale shows, BTC now sits around the 7400 area, the push beyond 7200 resistance to hold as support has been successful the first time, however, will look to be tested once again as discussed yesterday.

 

This will allow for two things: the confirmation of higher support levels working and proper continuation of the uptrend after a higher low is registered. Continued higher highs and higher lows needed at this time as BTC is in a crucial pivotal point long-term.

The large-scale flag channel formation has downside potential still at 4800, however, the upside break must happen beyond the 8k area. As the 7600 target is next, BTC must first maintain solid grounding, and this is the main point when considering a re-test of support.
Looking at the tech specs at this time is a challenge as well, considering stochastic levels have hovered in upper regions on the lower time frames.
However, the mid-scale as shown shows an exit from overbought (>80) levels once again
This is one big fact when considering sell on positions to buy back lower, especially considering this is a potential longer-term pivot. This will also bring higher volatility, and therefore downside protection under support should be made firm if no sell is put in place.
MACD shows continued upward momentum but does happen to be ticking negatively to attempt to cross – another reason to protect positions at this time if holding.
BTC is currently a Sell with buyback lower after support test.
Small pennant forms as well mid-scale, therefore upside break entry pre-set at 7560.
Futures Traders- trade their trend. The short-term trend is currently long, however, giveback expected soon so watch the pattern.