Bitcoin Approaches Apex

Bitcoin futures plunged upon opening for the start of the week. Within the first four hours BTC lost $1,500 in a matter of four hours after gaping down $200 from Friday’s close in the CME. It quickly regained a small portion of its losses and is trading steady around $6,700 at AM EST.

A compression triangle has been forming for almost nine weeks for the resistance trend line and six weeks for the bottom support line. The apex of these two lines converging takes place in three to four days and they intersect right at $7,000. If the bullish momentum is going to take us anywhere it has to break through this to the upside. Otherwise we are in for lower pricing, last week we tested the upper band on three occasions and today tested support at the lower support line.

We expect that when BTC breaks to either side if it is accompanied by a spike in volume than we will see big things happen.