Bitcoin still holds strong, even after the news of the suit against Binance and Coinbase. It is still maintaining its bullish potential.
The consolidation is starting to break, and some opportunities are starting to materialize.
The chart displays a long-term uptrend and a short-term downtrend, with a horizontal resistance line. Unsurprisingly, these three areas of value are aware of each other and are forming a synergy. A falling wedge pattern has also been formed.
First of all, we can see the interaction between horizontal resistance at the $24982 level and the long-term upward trendline. Price got to that level twice (as indicated by the red arrows), but reacted, and in between the first and second reactions, the price also reacted to the upward trendline (as indicated by the blue arrows), and so on, till it broke the resistance and reacted yet again to a higher resistance area (green). Price then formed a short-term downtrend and eventually a falling wedge pattern.
With all areas of value drawn and indicated, something interesting can be sighted. The horizontal line (now acting as support), upward trendline is still active and has intersected with the bottom side of the falling wedge, creating an area of confluence (red circle). Price, upon arriving in this area, expectedly reacted and ricocheted upwards. This is a high+probability buy zone.
A deeper look into the same area of confluence shows how hastily the price reacted to it on the 4-hourly chart above. Presently, we are waiting for a breakout on the top side of the falling wedge to signify a stronger confirmation of a bullish opportunity.
Featured image: Shutterstock
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Dominic Jubemi is primarily into legal practice. However, he has taken interest in building and grooming fundamental skills in FX and Crypto trading, audio engineering and in the nearest future, fiction writing.