Bitcoin (BTC/USD) has arrived at a critical decision zone. Will price action respect the 144 ema support on the daily chart?
Let’s review the two most realistic scenarios for the BTC/USD in the near future on the daily and 4 hour charts.
Price Charts and Technical Analysis
The BTC/USD seems to be trending lower but the price action has been slow and choppy so far. Price action also made a bullish bounce at the 144 ema:
- A bullish breakout above the 21 ema zone could confirm an uptrend continuation.
- The main target is the resistance box (red) and -27.2% Fibonacci target.
- This could complete either a bullish ABC or be part of a larger 12345 wave pattern. This depends on whether price action bounces at or breaks above the top.
- If price action, however, breaks below the support line (green) and 144 ema, then a deeper bearish pullback (orange arrow) is expected.
- A contracting triangle chart pattern could take place via an ABCDE (pink).
- A bullish bounce and breakout (green arrows) is expected later on.
On the 4 hour chart, price action is in a downtrend channel but also facing a strong support zone:
- The breakout is key for determining the next price swing.
- A break, pullback and continuation pattern would help determine whether the breakout is not a false break.
- A bullish breakout (green arrows) is needed above the resistance trend line (orange) and moving averages.
- A bearish breakout (orange arrows) is needed below the support trend lines (green).
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