- Strong wedge formation forming on the 4-hour chart.
- Volume on the CME exchange is slowing as traders await a new catalyst.
- Mean value on the chart shows at 10,144 and price still holds above the 10k psychological zone.
The chart above is a 4-hour BTC futures chart from the CME futures contract. It’s as a forward front monthly rolling chart which only takes into account the contract trading with the most volume.
In my view, we are in a very critical time as the price is being squeezed which is displayed by the wedge formation on the chart. I have been keeping an eye in this formation on the lower timeframes and whenever we get close to either of the trendlines volume comes in to defend it.
Even the 14 period RSI is showing signs of flatlining as it is hanging at the mid-point waiting for a break in either direction. If anything the RSI is slightly upward sloping and just above the 50 mid-point.
The composite volume profile on the left-hand side of the chart shows we are slightly under the mean value area. At the moment this stands at 10,144 and this price represents the area where most contracts have changed hands.
Support levels on the downside stand at 9739 which at the beginning of July worked to good effect and lower is the 9095 main support low.
If we break out of this wedge formation to the upside the first target could be the 10,966 resistance level.
Lastly, volume on the CME exchange is looking soft as it seems traders are looking for a catalyst for a break in either direction. I genuinely thought that the Telegram announcement could be a bullish paradigm shift but I feel it may be because of their own “Gram” coin the euphoria may have been dampened.
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