Bitcoin overnight (US CST) has produced a solid flat line of the mid-scale pennant that formed over the last few days. This level comes at about the 6525 level.
Additionally, BTC has been consistently testing the 6600 pivot area which continues to act as a volatility buffer. With the upper trend line of the pennant now at roughly 6575, the upside break is permanent with a candle close above this level.
- The current retrace move overall still manages to keep in line the mid-term uptrend as a higher low which holds far above the 6400 level while also maintaining roughly 1/2 of the previous leg up* – a metric that is needed for the continuation of the uptrend with lowered risk.
- There is also the long-term bearish upper trend line which stands at 6275 today – far below* the 6400 support level. It should also be noted that the overall market higher low pivot area from the BTC bottom break still remains at 6250 and has held firm over the past two months.
Stochastic readings mid-scale now seek overbought(>80) levels but remains flat along with MACD movement. However, MACD does look to slightly cross to the upside on the midscale – possibly giving way to an upside break.
BTC is currently a hold with downside protection at 6520.
Futures Traders – trade the trend. The short-term trend is currently sideways – no trade scenario. Wait for a breakout with pattern confirmation.