On the lower time frame(4hours), the price of BTCUSD has been spotted forming a Descending Broadening Wedge chart pattern.
The previous analysis on BTCUSD, we looked at the possibility of the upside targets pegged at $9750 (
) and more to that is the test of the near support at $8220 (www.tradingview.com/...-SUPPORT-28-05-2019/)
The present look of the chart still stands at the same range(but more possibilities of breaking to the upside).
Descending broadening wedges are mid list performers, found most often with upward breakouts in a bull market. Downward breakouts are rare. As with other broadening patterns, partial rises and declines predict the breakout direction. Partial declines work particularly well, but are difficult to distinguish from the pauses that normally occur as price bounces from trendline to trendline.
Price trend can be up or down leading to the pattern.
Shape looks more like a megaphone tilted down. Both trendlines slope downward.
Touches should be at least two peaks and two valleys should touch their respective trendline, but it's best if the pattern has a least five touches (three or more touches of one trendline, two or more of the other).
The chart pattern acts as a reversal of the prevailing price trend (the trend before the pattern began compared to the breakout direction) 58% of the time.
The close resistance after breakout to the upside is $9231, while the near touch of the support at the chikou span is $8574.7
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.
The previous analysis on BTCUSD, we looked at the possibility of the upside targets pegged at $9750 (
The present look of the chart still stands at the same range(but more possibilities of breaking to the upside).
Descending broadening wedges are mid list performers, found most often with upward breakouts in a bull market. Downward breakouts are rare. As with other broadening patterns, partial rises and declines predict the breakout direction. Partial declines work particularly well, but are difficult to distinguish from the pauses that normally occur as price bounces from trendline to trendline.
Price trend can be up or down leading to the pattern.
Shape looks more like a megaphone tilted down. Both trendlines slope downward.
Touches should be at least two peaks and two valleys should touch their respective trendline, but it's best if the pattern has a least five touches (three or more touches of one trendline, two or more of the other).
The chart pattern acts as a reversal of the prevailing price trend (the trend before the pattern began compared to the breakout direction) 58% of the time.
The close resistance after breakout to the upside is $9231, while the near touch of the support at the chikou span is $8574.7
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.