Bitcoin consolidates before breakout

Bitcoin futures in the CME are trading up about $100 (1.47%) at $6,910 as of 3:45 EST. After breaking below the 21-day exp. moving average yesterday BTC found resistance at that point today as it traded above this price point for a brief moment before correcting.

If we draw a line down the center of were the two converging trend lines meet we can see that this line (at approximately $6962) is cutting our compression triangle in half, and has become resistance as well for today. This is not conclusive in any way but does point to a greater probability BTC will break to the downside when it breaks out of its converging trend lines.

Usually an asset will break to the prevalent direction it was moving before the compression triangle began. In BTC’s case we had sideways action leading up the triangle so it is still up for grabs as to which side we will see Bitcoin break to. If this break is accompanied by a spike in volume like we saw today it would likely mean a further move to whichever path ultimately is chosen.