Crypto

On both daily and weekly candle charts we can see how BTC has broken above its steep bearish trend line starting from last week when it first crossed this trend. However BTC is still greatly range bound. In CME futures the range is between $6,500 and $7,500. All things being equal I expect this range to contain current pricing for the next week to two weeks.

On an hourly candlestick chart of continuous Bitcoin futures on the CME’s exchange some very unique and telling pattern pops out and is set to repeat for the fourth time in a 48 hour time span. This pattern is called a “bearish three gap” and usually signals an exhaustion of the current trend.

Despite A buildup of energy culminating all year formed by a bearish trend line that served as resistance that started all the way at the yearly high at $10,670 on February 13th on the upside. On the other end we had upward pressure from the support line drawn starting from the low of this year at $4,210 hit on March 12th.

In trading last night we had Bitcoin futures dip below our support line that formed the bottom of a compression triangle only to re-enter the triangle and has since attempted many times at breaking to the up-side.

BTC futures are leaning on their support line as of 4:45 ET, trading at $6,765 down $185 on the day. As we have been speaking about all this week BTC futures are approaching the apex of a long forming compression triangle as we speak BTC is scraping against the bottom trend line and appears almost certain that the break will be to the downside for a few reasons.