Well, it looks like BTC finally fell down out of that rising wedge of the past couple of weeks (purple). Rising wedges are a warning of a downturn, and this one finally broke.
However, BTC is now in a falling wedge (blue) which is a portent of an upturn soon. What happens in a falling wedge is that the buyers are backing up and absorbing the selling pressure. The sellers gradually run out of force as indicated by smaller and smaller drops in price as we near the wedge's tip.
One support level looks like $7500 (higher yellow line) which we recently hit and bounced off of. But I don't think it will hold because the falling wedge is not old enough. A better support level looks like $6900 (lower yellow line) which we could hit by June 8th.
At any rate, falling wedges are good!
However, BTC is now in a falling wedge (blue) which is a portent of an upturn soon. What happens in a falling wedge is that the buyers are backing up and absorbing the selling pressure. The sellers gradually run out of force as indicated by smaller and smaller drops in price as we near the wedge's tip.
One support level looks like $7500 (higher yellow line) which we recently hit and bounced off of. But I don't think it will hold because the falling wedge is not old enough. A better support level looks like $6900 (lower yellow line) which we could hit by June 8th.
At any rate, falling wedges are good!
Comment:
Incidentally, when something falls down out of a rising wedge, it generally falls around the height of the rising wedge at its beginning. In this case, the height of the rising wedge (purple) at its beginning is $1500. This means the fall take us down to around $6900 (starting from the point it exited the rising wedge, which as around $8400). That's another reason why I'm thinking maybe it should fall to the second yellow line.