So yesterday, or last night rather, we were looking at the 30 minute charts for BTC. We had observed a battle going on between the buyers and the sellers at the $2150 level. After several attempts to break above this level the bulls eventually took command of the market and broke the resistance. Shortly after, the high of the day was reached at the $2325 level. Here's last night's chart:
The chart above shows the breakout above the $2150 level, the $2325 high of the day and two sequential retests of the $2150 level. The price action had clearly found a new floor at this price. Often, that which was resistance becomes support once broken. This is a good confirmation that the uptrend is going to continue.
Towards the end of last night's blog we were then watching the culmination of a pennant formation nearing it's need for a decision to be made. Was the price going to break north or was it going to break to the downside? Here's last night's chart showing this action coming to a head:
Consequently, the price moved in our favor, to the upside! Here in this updated chart you can clearly see this short-term consolidation coming to a decision point and ultimately breaking through the downward trendline beginning at yesterday's high.
Now, what we're seemingly witnessing is a new battle to break above yesterday's high of $2325. The fact that the sellers stepped in at that price yesterday forcing the price to come back down shows that this is the new resistance line. At the time of this blog, this resistance level is being retested.
Will it be broken? Only time will tell. You can see in the chart above that it's looking like this may play out like we hope. Ideally, I would like to see the buyers overwhelm the sellers here. We're looking for a repeat of yesterday's action but at these new and higher levels. Of course, should this resistance be broken, we would expect the price to revisit $2325 only to bounce up and confirm that a new support level has been established. Stay tuned!
You can view yesterday's analysis here:
https://steemit.com/bitcoin/@ryansteemit/bitcoin-analysis
