Bitcoin Breakout that didn't happen – sideways days in the year ahead
BTC broke out of Cup and Handle pattern, but gave up.
Consolidation is the way ahead in the new year.
Bitcoin, the poster boy of cryptocurrency world, did break out of the cup and handle pattern on the charts, as pointed by this author last week, but only to give up again, in a sign that bulls too are on Christmas vacation alongwith bears.
BTC/USD is down about two cents of a percent at $3,881 and trading in less than 2 percent range for the day in a thinly traded weekend as well as year-end trading. On the 180-minute chart, this largest crypto by market cap, did break out of the cup and handle pattern by crossing past $4,200 resistance line, but couldn't sustain it. Resulting into prices going below the very trendline they broke out of.
Although, after the claw back, prices found support at 21 days SMA around $3,576, while upside still seems capped around $4,200, signalling consolidation ahead as the new year dawns.
BTC/USD 180-minute chart:
Manoj B Rawal
Alan Zibluk Markethive Founding Member