Very few realize this, but we are in the most important area you could possibly imagine, this is the endgame!
In the next few days we will decide, if we will go to 16k or melt down to 3-5k or even below that and experience a total reset.
Let's start off very slowly...
We have built up a very strong support line, which is lasting since May. This support line is what I call the "support line of hope", it saved us when we dropped to 9k.
Problem is very simple: Each time we touch this support line it gets weaker and weaker. We have already had a lot of contacts with it (see chart).
There are exactly two scenarios, you can trade both of them.
Bullish: We see a bounce to 9.8k, bounce off and retest 9.5k and just break trough 9.8k and out of the wedge.
Bearish: We bounce back to 9.8k or a little above, get rejected immediately and just dump to the bottom of the wedge (don't have to hit 9.8k first).
You can set short orders at 9.8k and have the opportunity for the short of your life with a very tight stopp loss.
When we hit the wedge bottom at around $8500, a lot of people will expect an immediate bounce back, because the wedge pattern will be clear.
That's where the real fun will beginn.
There is the possibility that the falling wedge will do what a falling wedge is supposed to do most of the time, breaking to the upside. However, this is the reason why it is more likely that we will just dump through everything and melt down to levels nobody was anticipating.
We had a similar outcome, when we had a big, clear as daylight rising wedge in June at 9.5k. What happened, did we fall like we technically were supposed to? NO! We broke straight to the upside in one big pump to 11k+. We can reverse this situation and use it for our current situation, when it seems bullish, however, the outcome can become really really bearish.
Sometimes when it is the most obvious, it's not else everybody would be making money.
What's the smartest decision to take (no financial advice)? Go into Fiat and just wait how it plays out, a long after a small bounce at 9.8k to 9.5k or a short at 9.8k.
No matter what, caution is advised, the next moves will decide everything.
In the next few days we will decide, if we will go to 16k or melt down to 3-5k or even below that and experience a total reset.
Let's start off very slowly...
We have built up a very strong support line, which is lasting since May. This support line is what I call the "support line of hope", it saved us when we dropped to 9k.
Problem is very simple: Each time we touch this support line it gets weaker and weaker. We have already had a lot of contacts with it (see chart).
There are exactly two scenarios, you can trade both of them.
Bullish: We see a bounce to 9.8k, bounce off and retest 9.5k and just break trough 9.8k and out of the wedge.
Bearish: We bounce back to 9.8k or a little above, get rejected immediately and just dump to the bottom of the wedge (don't have to hit 9.8k first).
You can set short orders at 9.8k and have the opportunity for the short of your life with a very tight stopp loss.
When we hit the wedge bottom at around $8500, a lot of people will expect an immediate bounce back, because the wedge pattern will be clear.
That's where the real fun will beginn.
There is the possibility that the falling wedge will do what a falling wedge is supposed to do most of the time, breaking to the upside. However, this is the reason why it is more likely that we will just dump through everything and melt down to levels nobody was anticipating.
We had a similar outcome, when we had a big, clear as daylight rising wedge in June at 9.5k. What happened, did we fall like we technically were supposed to? NO! We broke straight to the upside in one big pump to 11k+. We can reverse this situation and use it for our current situation, when it seems bullish, however, the outcome can become really really bearish.
Sometimes when it is the most obvious, it's not else everybody would be making money.
What's the smartest decision to take (no financial advice)? Go into Fiat and just wait how it plays out, a long after a small bounce at 9.8k to 9.5k or a short at 9.8k.
No matter what, caution is advised, the next moves will decide everything.