BTC/USD: Technical Outlook, Edition #7 (30/05/21)

Patience or persistence - read on for more...

Bitcoin is experiencing some lethargic price action over the weekend trading period. In these market conditions, it can be easy to mistake bullish set-ups for fake-outs and vice versa. 

Allowing more time for price to consolidate can sometimes identify other formations at play.

Our bullish Head and Shoulders argument has become less likely overnight, as a potential right shoulder broke down further from USD 37K to USD 33K. In doing so, BTC/USD revealed the formation of a new pennant taking the shape of a symmetrical triangle. 

The triangle is approximately 80% complete, meaning Bitcoin will soon attempt either a break up to USD 41K or down towards USD 30K or less. 

Further, Bitcoin dominance (BTC.D)

This dominance has lately been rising steadily, so the market could be anticipating a dominance play with this next break. Trading altcoins maybe be a better idea until after this pennant has finish consolidating. 

See you again for the next update.

- q

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