Bitcoin maintains a steady course as a breakout from the pennant pattern mid-scale occurs in overnight (US CST) trading.
The breakout, as shown in yesterday’s Rogue* Analysis, occurred at 6360 to seek out resistance. This is currently shown with the rejection of price at 6400 resistance. 6360 also held well after the rejection at resistance to allow BTC to continue upward once again.
Resistance will be tested again throughout today’s trading.
The pennant flat top breakout also comes with the fact that the breakout was followed by a minor retrace to test the 6360 level again held less than 1/2 of the previous leg up*(breakout leg).
This allows the continuation of the uptrend to stay intact short term.
Stochastic momentum 0n the hourly remains positive but is in the overbought (>80) region while BTC attempts to re-test resistance. For a breakout entry, this remains a hold but the risk remains high as the BTC overall downtrend on the larger scale is still active.
This is the case until the long-term upper trend line is once again broken. This line is now at 6460.
MACD is positive, but movement is relatively flat – also giving an indication to a struggle going forward on the mid-to-long scale.
BTC is currently a hold with downside protection at the entry point.