STRONG PENNANT CHART FORMING - CONSOLIDATION IN PROGRESS
After the sharp price movements from yesterday a typical Pennant Chart is forming. This formation should resolve to the upside to test the 55K resistance when enough volume takes out the panic sellers that formed with the previous violent price movements.
See here for an explanation on Pennant Pattern: http://www.investopedia.com/university/charts/charts6.asp
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How much volume will be needed to break out? Looking at the three day chars we can see that the previous breakouts of resistance required 400 to 1000 BTC. In the last hour we attempted a break but the volume was not strong enough to get the job done. Our recent attempt had 150 BTC volume.
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Sellers and buyers after the break out attempt have re-aligned but buyers are displaying weakness at 45K, which if attacked could take us back to 40K
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Some consolidation is required here to rebuild 45K support and to gather enough BTC to go to the next level.
Buy-Black
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