Bitcoin price on Sunday continued to stick to its uptrend path, recording as much as 4 percent gains against the US Dollar.
The BTC/USD began the Asian trading session with a small upside push in continuation of the overall bullish momentum. As the day progressed, there was visibly a weaker selling sentiment towards the interim resistance targets. The European session confirmed it by forming higher highs towards 7425-fiat, followed by a feeble bearish correction attempt. As we now enter the US session, the BTC/USD is attempting a rerun towards the said higher high, while looking to invalidate the Rising Wedge resistance for a potential breakout.
The BTC/USD continues to trend upward inside the Rising Wedge channel we introduced in our of our previous analysis. As of now, we can notice the pair testing the channel support for a potential reversal/breakout. A breakout scenario could have us adjust the Wedge resistance trendline concerning the previous higher highs. However, in a traditional sense, an upside breakout from a rising wedge means a rally which is equal to the distance between the distance between channel support (origin) and channel resistance (origin).
BTC/USD meanwhile stays bullish. We are looking at a potential crossover between 100H and 200H moving average that confirms a strong buying sentiment near-term. The RSI and Stochastic both are in strong buying areas, further indicating a bullish bias while expecting a downside correction.
The latest upside has allowed us to yield decent profits from our long positions. It has also brought us inside a new range with new parameters to watch out. Today, we are looking at 7153-fiat as our interim support level and 7425-fiat, the intraday high, as our interim resistance level.
A break above the Rising Wedge resistance will help us put a safe breakout target towards 7425-fiat while eyeing 7459-fiat as a whole. Placing a stop loss just three-pips down the entry position will protect our trade from additional damages, in case the trend reverses.
A pullback from the Rising Wedge resistance would make us put a short towards 7153-fiat as part of our intrarange strategy. A further break and we’ll enter a similar position towards the Rising Wedge support, while keeping our stop loss three-pips higher than the entry points in both the said short positions.
Featured image from Shutterstock. Charts from TradingView.
Last modified (UTC): September 2, 2018 22:13