A big move is on the horizon:
BTC has been a bore of late. The volatility has been completely shut off for now and there isn't too much money being made on these minor swings. If you've held onto your trades longer than a day you were probably breaking even, or at a tiny loss. Nothing special happening right now other than a ton of consolidation.
But, that will change within 2 weeks:
As you can see, BTC has been in an ascending channel since the first week of Sept. and hasn't shown much volume or any big momentum in the process. We are also starting to contract price action inside a symmetrical triangle. The measured move will be very telling on what long term pattern will develop.
We are also right in the middle of a huge descending triangle outlined in the orange horizontal and diagonal trend lines. Even though this pattern is bearish, you cannot assume every pattern will play out 100% of the time. What we can agree on is that with this type of severe consolidation, it will explode to one side or the other. A break out of the symmetrical triangle would get us above the descending triangle, which is bullish as hell, and a break down would send us to the bottom of the descending triangle around the 6040 zone.
The top of this descending triangle lines up perfectly with the end of the symmetrical triangle. So, either way this will break. This can drag out for another two weeks if it wanted to seeing as thats the double resistance area we either break or don't and head down. Even if we break down, we can still hold the bottom of the descending triangle at 6040 and make and another attempt to break out above the triangle. A break and close below 6040, unfortunately, will send this into free fall. A break above it will most likely need to be monitored on a daily basis for a false breakout or could be the start of a new bull cycle. This can work the other way as well. We've seen false breakdowns many times and this is no exception. We very well could see this break down below the triangle only to fake out most traders and then break out hard.
That being said, a major move is coming. Either we will enter a new long term bull cycle or we will be seeing much more pain and severe selling. This is the area to play it smart. Use your risk management as best as you can to prepare for what should be coming very soon.
Good luck!
