For education only.
Price (consolidating)
Following on from yesterday's review (here) BTC is forming a price consolidation pattern followings its run up on Thursday.
The consolidation is around the area of resistance offered by the months-long descending trendline (red) and could be a continuation price pattern.
A retrace below the 23.6% fib level and back to previous resistance (potentially now support) level at $7,600 might represent short term value. However, given the market sentiment has shifted to be more bullish, the price may not retrace and instead break the current pennant formation to the upside.
Volume (steady, accumulation)
The On-Balance-Volume (OBV) indicator (pink line) continues to make higher-highs and higher-lows indicating steady accumulation (Bitfinex). The average trading volume is holding relatively steady.
Trading (pullback to $7,600, reversal, long)
I'd like to see further market relaxation with a small retrace to $7,600 then a reversal pattern or candle where we'd be looking to go long with a target of $9,000 and a stop tucked under the $7,600.
If the price breaks the pennant to the upside without the retrace, we'll reassess.
Until tomorrow,
Bobby
(Trader)