Bitcoin tests the bottom trend line of the expanding megaphone in overnight (US CST) and early morning trading with a low of 6525. Today’s price action also comes close to testing the long-term upper trend line of the bear market which now stands at 6640 – exactly the breakout point for the upside.
This projection has been active now for several days. With price action holding higher lows and lower highs* BTC remains in sideways consolidation in what may be the biggest pressure point in trading history. This also increases risk as the breakout will be quick and ultra volatile.
Technically, BTC has formed a pennant which is bullish mid-term, however, the fact that the long-term upper trend line has yet to be broken in conjunction with resistance at 6800 giving price rejection twice already(almost three times – the third was a soft test*) adds another layer of downside risk.
Stochastic now pivots mid-scale, but daily remains seeking oversold (<20) levels as well. MACD remains slight negative but more or less flat with consolidation at bay.
BTC is currently a No Play for entry to hold. Short term play risk remains high – if entry now made for daily trade, downside protection must be tight near 6520.