This is the week Bitcoin (BTCUSD) will finally break out or break down. Whatever happens next will be decisive. I am not calling this one though. The charts are surprisingly indecisive and suggest to me that the market itself is confused about this assets next direction. Positioning will likely decide everything as is often the case. The one thing we need to keep in mind is that the majority must always be wrong!

So watch sentiment numbers and that should indicate what may happen next.

From the chart I have posted we can see that the price pattern has developed a flag or narrowing wedge pattern covering the last three weeks. Bitcoin has been going nowhere fast. For some people this is maddening. You cannot trade sideways movements as a rule and these kinds of formations are the worst for hair-pulling since you just get whipsawed back and forth inside a smaller and smaller pattern as time passes.

Eventually relief arrives and it might even feel a little orgasmic if you bet correctly! But relief is on the way. We are approaching the end of the flag pattern and I really doubt this carries through to Friday without a break outside that blue boundary shown. We may even see the start of a big move tomorrow (Monday April 9th which is Easter Monday btw) so be on the lookout for imminent action.