Bitcoin: Breakout that didn't happen; sideways days in the year ahead
- BTC broke out of Cup and Handle pattern, but gave up.
- Consolidation is the way ahead in the new year.
Bitcoin, the poster boy of cryptocurrency world, did break out of the cup and handle pattern on the charts, as pointed by this author last week, but only to give up again, in a sign that bulls too are on Christmas vacation along with bears.
BTC/USD is down about 0.2% at $3,881 and trading in less than 2% range for the day in a thinly traded weekend as well as year-end trading. On the 180-minute chart, this largest crypto by market cap did break out of the cup and handle pattern by crossing past $4,200 resistance line, but couldn't sustain it. Resulting in prices going below the very trendline they broke out of.
Although, after the clawback, prices found support at 21 days SMA around $3,576, while upside still seems capped around $4,200, signaling consolidation ahead as the new year dawns.
BTC/USD 180-minute chart:
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Author
Manoj B Rawal
Independent Analyst
Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.
