BTCUSD. 07 Jan 2020 update

BTCUSD. 07 Jan 2020 update

What is on background

In the previous overview in private group, I wrote:

buyers still have better odds. I will not be surprised if BTCUSD will produce an attempt to break out above 8k soon.

As expected, after NS (1), the DB (2) appeared. Chart told us, the market is going to break out above the violet line (resistance line of the wedge).

So what?

(3) Breakout effort (pure demand)
(4) Hidden weakness.

Why bar 4 is weak? Because:

  • it has pure closing far from highs
  • the highest volume on the chart. Too much activity on up-bar represents the potential FOMO instance. The breakout was too obvious for majority, and many traders opened longs. That is why price becomes vulnerable to make a step-down.

(5) SLKT

What is next?

The supply zone from 8k level is clear. Bulls need many efforts to struggle through 8k and settle above it. So far, we have not enough signs to reverse into the bearish team.

I propose to act in the following plan:

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