Today in the cryptocurrency markets we are seeing a continuation of the bullish moves we saw yesterday. In the post I shared yesterday, I talked about one of the best trades of the week in which you would want to make and that was QTUM.
4 Hour Chart: QTUM
As you can see from the chart yesterday we had a very small bullish move shown by a small pull back and a continuation of the move. I expect to see this move take us all the way to the top of the channel and mirror the impulse move that happened before. Now it doesn't have to make the exact same distance or angle to reach the top but I expect some similarity between the previous impulse wave and the current one.
Looking at Bitcoin, we have an important decision point gonna occur today where we will see BTC test the resistance line that has been keeping it in its bearish move for the last month. This is a very important decision point because this will determine if we have another downward move that will take out the previous low or if we are finally in a reversal and should see upside for the next couple weeks.
4 Hour Chart: BTC
As you can see from the 15 minute chart, BTC is slowly climbing towards the resistance line and if it does test the trend-line, this will be the 3rd time this month it will be tested. Looking at the other cryptocurrencies in the market and what some of them are looking like they will be doing this week I am on the more bullish case that we will see a breakout in BTC.
15 Min Chart: BTC
Now if we do see a breakout in Bitcoin, I expect to see it make a flat pattern and break the previous high from before. If it does breakout, look for a trade set up that you can trade and be sure that you are patient enough to wait for completion of the impulse move and not pull yourself out of the trade too early.
Bitcoin Projection: