In the 4hr timeframe, BTC is struggling to sustain new highs. On lower timeframes, this is often just thrown out as being price action ‘chop’ and is difficult to trade. But closer inspection gives it the impression of making higher highs and higher lows still, but just barely. And that is the important part here, it looks like price action may be stalling a bit while accumulating more buying side pressure.
If we jump down to a 1hr timeframe chart (shown below), this shows some clarity on the more recent data. The ‘higher highs’ in this case actually show up as equal highs and this let’s us mark up a clear resistance line. But, this does show the recent high as a clear bull trap as it would’ve been viewed as a breakout which immediately reversed, inducing some buyers.
In the near term I am watching this to play out by continuing to fill this wedge pattern with more consolidation and ‘price chop’, but at the least think we will be revisiting this lower trendline in the near future based on the lower timeframe bull trap.
In the 4hr timeframe, BTC is struggling to sustain new highs. On lower timeframes, this is often just thrown out as being price action ‘chop’ and is difficult to trade. But closer inspection gives it the impression of making higher highs and higher lows still, but just barely. And that is the important part here, it looks like price action may be stalling a bit while accumulating more buying side pressure.
If we jump down to a 1hr timeframe chart (shown below), this shows some clarity on the more recent data. The ‘higher highs’ in this case actually show up as equal highs and this let’s us mark up a clear resistance line. But, this does show the recent high as a clear bull trap as it would’ve been viewed as a breakout which immediately reversed, inducing some buyers.
In the near term I am watching this to play out by continuing to fill this wedge pattern with more consolidation and ‘price chop’, but at the least think we will be revisiting this lower trendline in the near future based on the lower timeframe bull trap.