BTCUSD has transitioned into a contracting wedge

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
After securing the target from the rising wedge breakout (check linked idea), BTCUSD 4 hour chart has now taken the shape of a contracting wedge /symmetrical triangle.

While often interpreted as a continuation pattern, like all triangles, a symmetrical triangle is a neutral pattern with a slight continuation bias ( bullish in this instance). This could soon break either way in a few short sessions.

It's worth keeping an eye on RSI since the RSI trendline identified before the rising wedge breakout is still providing seemingly impenetrable resistance.

A bullish breakout will be further confirmed by a break above the RSI trendline and surge in volume . A bearish breakout could see us testing the 38.2% Fibonacci retracement level for support.


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