Trading Crypto: **Sunday Afternoon: Bitcoin Holds Up, But Price Action Is ‘Snooze Worthy’

Bitcoin overnight trading(US CST) sees the formation of a mid-scale pennant formed as the lower trend line allows the price to hold the 6400 support level. Going from about 6100 to 6600 as shown, the 500 point upshot gives one issue to the bull case for BTC with the fact that this is currently considered a retrace move by taking back about 1/3 of the previous leg down. Considering the long-term trend is still bearish, the case for BTC to continue higher must come in the form of a consistent pattern showing higher highs and higher lows taking back more than 1/2 of that same leg. This comes with BTC seeking out the 6800 resistance level and beyond – a hard feat at the moment.

Rogue* Analysis shows that as the mid-scale pennant has formed, there are two concrete angles to look at BTC. The downside sees a break at 6340 which will seek out the lows and beyond at the 6100 mark. The danger lies in the fact that as we discussed before if BTC is to seek out the 6k mark, this could spell trouble with the lower 5k region being sought out. The upside break would occur with price action going above 6560 to seek out the next resistance point.
Stochastic readings remain in the upper region.
MACD now crosses negatively giving downward momentum to price action but does so lightly.
BTC is currently a hold – downside protection at break point.