BTC by Mr. C Currently $6227. The bull flag mentioned yesterday resulted in a rally to $6350....
**What should we expect?**
If we were to take TA literally we can expect BTC to test $6400. A rising wedge is forming on the Day Chart which is a bearish pattern, this can only be broken if a higher high is obtained which in this is case is $6700. $6400 is a downtrend resistance level which means that if BTC is to see better days it needs to run till $6600 - $6800. This is the area I would short BTC.
One last encouraging observation on the chart is a bullish divergence where price is making lower lows however RSI and Stochastic are making higher lows. Now I know many disregard bullish divergences and I agree. However bullish divergences on the Day Chart are rare and more convincing than lower timeframes. Could this be the beginning of a reversal?
Bulls need to make a move here, if not then as stated yesterday we will test $5900.
$5750 is to be treated as major support
$5900 is to be treated as temporary support
$6400 is to be treated as temporary resistance
$6775 is to be treated as major resistance