Currently, BTC markets are actively testing two main trend lines that include the main centric triangle. At the time, this article was being written, in all likelihood, bitcoin was at the peak of one of the main trend directions, which appeared around the middle of last year. At the same time, there was another check decreasing the tendency of a trend that has managed to reach an unprecedented maximum in the month of December, accounting for nearly 20 000 US dollars, and about 10 000 dollars at the local level. Most traders assume that in the near future the triangle will give an opportunity to see another new trend in BTC markets.
Symmetrical Formation of a Range
Over the past few months, BTC markets have teamed up in an ever-progressing field of spreading gains of about 6 000 to 10 000 US dollars. The markets established a large one-sided centric triangle in the sequel of last month formed maximum at the local level, amounting to about 10 000 US dollars.
The price action is peculiar to refract above or below the symmetrical formation of a triangle. At the same time, the contemporary price is about 7 700 US dollars, as in the case of the upward trend line, starting from July 2017, and is about 1 800 dollars, and the downward trend line runs from a record level of almost 20 000 dollars to the local maximum about 10 000 dollars in May.
What to Wait For?
Recently, BTC markets give traders disappointing mixed messages, which is why there is a non-stop decline, which indicates that the number of active market participants is declining every day, as everyone prefers waiting for the next big step of bitcoin.
Considering stochastic RSI in more detail, it becomes obvious that bitcoin sends various conflicting messages in different periods. Based on short time periods, including 1 day, 12 hours, 6 hours and 4 hours, it follows that BTC markets may soon be overbought, while the stochastic RSI is above the 80th threshold at this stage.
Nevertheless, the charts in the 1 week and 3 days range show that the stochastic RSI is under the 20-threshold value, which indicates that an upward shift may be unavoidable.
Always supposing that BTC markets will be able to overcome the symmetrical structure that is the basis for markets, there is a reason to view this step as evidence that the contemporary retracement constructed a higher minimum and is probably to serve as an accelerator for retesting from 9 000 to 10 000 USD.
If the markets fall below the long-term uptrend, many traders predict that bitcoin will conduct a support check on an area of 6 000 dollars for the third time during the recent year.
Bitcoin Cash Consolidation
Over the past few days, the BCH markets have seen a strengthening above 1 000 USD after an impressive bull rally, which resulted in Bitcoin Cash gaining more than 30% and breaking out of the bearish channel that in turn led to a price action for a longer part of May.
Bitcoin Cash was trading for 1 140 dollars, and the markets seemed to withstand an opposition to about 1 200 dollars, – a price zone that comes together with a downtrend from the November high to a district high of about 1 800 dollars posted in the past month.
Considering the BCH / BTC charts, Bitcoin Cash markets it can be seen that they manufactured the second higher low for 2018. A recent bullish pulse saw that BCH increased by more than 20%, as it rebounded from about 0.124 BTC to a resistance level in the 0.15 BTC area.
At the time, this article was being written, BCH is trading for about 0.148 BTC.