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- Bitcoin – Evolving into a Larger Consolidation Pattern
At the start of the week, we saw BTCUSD rally sharply out of a wedge pattern that was forming since the beginning of the month.
BTCUSD 4H Chart 7/16
(click to enlarge)
- However, the rally stalled at a support/resistance pivot area around 640.
- Price now looks trapped for further consolidation as it crossed under the 100 and 50-period SMAs in the 4H chart.
- A break back above 630 could liberate the cryptocurrency for a bullish outlook.
- There is downside risk toward the 600 handle as price action evolves in to a larger consolidation in July.
Let’s take a look at the 1H chart for closer look at today’s price action:
- The 7/15-7/16 sessions saw a consolidation and then a bearish break, which also kept price below the 200-, 100- and 50- hour simple moving averages. This suggests BTCUSD is turning towards o a bearish mode in the 1H chart.
- The 1H RSI has pushed below 30 and if it stays below 60, it will show the near-term bearish momentum being maintained.
Previous Post by Author: WTI Crude Oil Shows a Possible Price Bottom off the 200-Day SMA (7/16)
July 16, 2014 at 02:27PM
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