At this point the trend is not confirmed. Some patterns are emerging that can give some clues. A small inverse head and shoulders (blue) is forming. If this inverse head and shoulders goes into play, the target is $7740. This target can be reached with price remaining confined within the rising wedge or breaching it. If price breached the rising wedge then that pattern is invalidated and the price was following a parabola. The likely top of the parabola is the green longterm trendline at around $7800. It is possible the inverse head and shoulders does not come into play and price simply drops out of the rising wedge .
All three possible paths listed above end up forming a large heads and shoulders (orange). In this idea I don't consider the price being supported by the 4H 200ema which means that the trend will be confirmed downward. The downward trend is commensurate with the large head shoulder whose target will be between $4k aand $3.7k depending on how high the head is.
All three possible paths listed above end up forming a large heads and shoulders (orange). In this idea I don't consider the price being supported by the 4H 200ema which means that the trend will be confirmed downward. The downward trend is commensurate with the large head shoulder whose target will be between $4k aand $3.7k depending on how high the head is.
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The probability of price going parabolic has been reduced by its sideway motion. It appears the Inverse head and shoulders will not be completed. It is now less likely a push upward will happen and more likely that price topped.
