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Bitcoin analysis for May 1st 2021

It wouldn't surprise me to see BTC take a bit of a break after a really nice push higher yesterday. Looking at the daily chart we've got another really strong daily candle but so far today BTC is forming a doji candle, BTC is also pretty extended above all of the moving averages. There is still about 10 hours to go before this candle closes so it may not close as a doji but I still feel that we may see some sideways price action for a bit or even a small pull back giving the MA's time to catch up.

It is still too early to call this but it looks to me as though BTC could be forming a rectangular consolidation pattern. There are two touches on the bottom trendline but only one on the top trendline so there would need to be another touch of the top before it would be legitimate. Since BTC has been in an uptrend this would be considered a bullish continuation pattern. The measured move once a breakout occurs would be up at about $83k. Like I said it is still early but to me it looks like we are in a consolidation phase before another move higher.

How long this consolidation lasts is unknown but it is healthy after such a strong uptrend.

bullish rectangles are continuation patterns that occur when a price pauses temporarily during an uptrend – they offer you a buying opportunity. ... If you are trading you would place your profit target the same distance above the rectangle's upper resistance level as the distance between the rectangle's two parallel lines.

That's all for now but there will be a lot more coming soon.



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