In the short term, we have a common consolidation zone that is turning into a triangle. What is nice about this, is we have very clear breakouts on the hourly and 4-hour charts. The zones are highlighted on the image below. Beyond that, in our Hurst Analysis, we see some further areas for a breakout.

82018btc

 

The two zones give me low risk entries both long and short. Not only do the entries give a clear break of the triangle, but it’s also a break of the most recent swing high (or swing low) in that range. If we do a break higher, expect a large impulse drive to 7200.

Hurst Cycles

BTCUSD Primary Analysis Aug 20 1445 PM 1 day

The horizontal lines on the top and bottom of the chart represent various time cycles of Bitcoin using Hurst’s analysis. The yellow line represents the 80-week cycle, green is the 42-week cycle, lime green is the 20-week cycle, teal is the 80-day cycle, blue is the 40-day cycle and purple is the 20-day cycle. The trend lines also represent those same time frames. On this chart, we see that the current daily candlestick is sitting right against both the 20 and 40-day downtrend lines. Right above that zone is the breakout zone of 6671.