The daily equilibrium pattern on Bitcoin continues to tighten with declining volume. We are still waiting for a break of this pattern for more clarity. Until the pattern breaks we are in a no trade zone. We want to this pattern break in one direction or the other before entering a trade so the odds will be more in our favor.
A bull break of this pattern could potentially cause a short squeeze and would set the bulls up to form a weekly equilibrium pattern as they are looking to change the overall trend. A bearish break of this pattern would likely see the price fall below $6000 and an opportunity for a bounce play.
Equilibrium pattern on the 4hr chart:
Equilibrium pattern on the 4hr chart:
