I am not impressed with the pennant breakout confirmed on the daily chart on Thursday. While it is a bullish continuation setup, the shape of the Thursday's candle, which confirmed the breakout, is indicative of buyer fatigue. Its the long upper shadow that takes the shine off the breakout.
Also, rallies into or above $7,000 continue to be sold into. The cryptocurrency has failed at least 4-5 times to penetrate or keep gains above $7,000.
All in all, its no longer a constructive chart and suggests scope for a fresh drop. Prices may drop to $6,138, under which a major support is seen near $5,850.
I would consider buying once I see a convincing candle – one with small or no upper shadow – on the hourly chart or a green marubozu candle on the 15-min chart, marking a breakout above $7,000.
Also, rallies into or above $7,000 continue to be sold into. The cryptocurrency has failed at least 4-5 times to penetrate or keep gains above $7,000.
All in all, its no longer a constructive chart and suggests scope for a fresh drop. Prices may drop to $6,138, under which a major support is seen near $5,850.
I would consider buying once I see a convincing candle – one with small or no upper shadow – on the hourly chart or a green marubozu candle on the 15-min chart, marking a breakout above $7,000.