The inefficiency blocks were all filled last week. So is it now time to start moving up again? Let's take a look at the various timeframes. With the filling of the lowest block, there was also almost a retrace on the ema55 which I find quite remarkable given the confluence I had expected to see. Yesterday's candle close was a nice hammer on the block and today we see a beautiful bullish opening.
The rsi briefly dipped below the 50 level but has so far managed to stay above it. The rsi is rising and the ema is falling. These are going to meet in the near future to reject or break out bullish.
daily chart: https://www.tradingview.com/x/7uTtGdcB/
Are we now seeing the first signs of a trend reversal? A nice falling wedge that now appears to be breaking out. When the breaker above it is flipped this is confirmation to me that the price is going to reverse. Even nicer would be to flip the highs in the red circle.
However, the whole inefficiency block is not filled yet (not that it necessarily has to be) and we see the ema55 pretty close to the ema100. These may start to cross bearish making this a fake out.
4h chart: https://www.tradingview.com/x/tzoHqQMj/
The key now is to start setting a higher high and this should happen above the breaker. We see the ema200 also hovering in that area and that could cause some resistance. The rsi is in a hugely favorable position with just had a test on the ema and showed a big bounce. All of this above the 50 level as well.
1h chart: https://www.tradingview.com/x/VAJcoVLq/
Conclusion:
My expectation is that BTC will continue to rise in the near future and this will be the retrace for now. On lower timeframes, there could still be a wick to the bottom of the inefficiency block but we would need very strong support there.
When the breaker flips to support, that is the local support I look for. We could encounter resistance around 51700 after which the road is almost open to the ATH.
