RISING WEDGE IN THE MAKING ON BTC / USD. WHAT CAN WE EXPECT?
BULLISH;
WE CAN HAVE A STRONG BOUNCE ON THE BOTTOM OF THE SUPPORT BOX (GREEN). THIS WILL BE SEEN AS A FAKEOUT OF THE PATTERN. WE SEE THIS KIND OF FAKEOUTS OFTEN ON BTC. IN THIS WAY THE LIQUIDITY IS SEARCHED FROM BOTH SIDES. REMEMBER, THE MARKET ALWAYS WINS. IF WE HAVE A BOUNCE WE CAN EXPECT A PRICE TARGET OF APPROXIMATELY $11000 TO $12000. THIS WOULD PUT US INTO THE PREVIOUS SUPPORT ZONE (PURPLE BOX), WHERE ALSO THE 0.5 FIB LVL IS SITUATED. AFTER A HEAVY DOWNWARD PRICE ACTION, WE OFTEN SEE THAT THE COURSE IS TEMPORARILY RECOVERING AND IS GOING TO LOOK UP THE 0.5 FIB LVL. ONCE THIS IS ACHIEVED, IT WILL BE TESTED AS RESISTANCE AND CONTINUES WITH THE FALLING PRICE ACTION. THIS WOULD ALSO BE LOGICAL SINCE THE LOCATION OF THIS LVL IS IN PREVIOUS SUPPORT ZONE. THIS ZONE WOULD BE TESTED AS A RESISTANCE ZONE.
BEARISH;
CURRENTLY, IT LOOKS LIKE WE ARE BREAKING THROUGH THE BOTTOM OF THE PATTERN. THIS IS NORMAL SINCE IT'S A RISING WEDGE. WE CAN EXPECT A PRICE TARGET OF APPROXIMATELY $9600. WE COULD FIND SUPPORT ON THE IMPORTANT TREND LINE (DARK BLUE), AS LONG AS WE STAY ABOVE THIS LINE, THERE IS NO REASON TO PANIC. IF WE HAVE A CLOSURE UNDER THIS LINE, WE CAN EXPECT FURTHER DOWNWARD PRICE ACTION. ALSO THE IMPORTANT SUPPORT ZONE (GREEN BOX) WOULD BE BROKEN.
IT'S IMPORTANT TO KNOW THAT, CURRENTLY, EVERYONE FOCUSES ON THAT "IMPORTANT" CME-GAP AND SO PROBABLY A LOT OF BUYER ORDERS HAVE BEEN PLACED AROUND THAT LEVEL. IN MY OPINION, IF WE GO TO LOOK UP THIS LVL,WE WILL JUST BREAK THAT LVL AND HAVE HEAVY DOWNWARD PRICE ACTION TO CATCH EVERYONE BY SURPRISE. DON'T FORGET, WE ARE TALKING ABOUT BTC!
BE PREPARED!
BULLISH;
WE CAN HAVE A STRONG BOUNCE ON THE BOTTOM OF THE SUPPORT BOX (GREEN). THIS WILL BE SEEN AS A FAKEOUT OF THE PATTERN. WE SEE THIS KIND OF FAKEOUTS OFTEN ON BTC. IN THIS WAY THE LIQUIDITY IS SEARCHED FROM BOTH SIDES. REMEMBER, THE MARKET ALWAYS WINS. IF WE HAVE A BOUNCE WE CAN EXPECT A PRICE TARGET OF APPROXIMATELY $11000 TO $12000. THIS WOULD PUT US INTO THE PREVIOUS SUPPORT ZONE (PURPLE BOX), WHERE ALSO THE 0.5 FIB LVL IS SITUATED. AFTER A HEAVY DOWNWARD PRICE ACTION, WE OFTEN SEE THAT THE COURSE IS TEMPORARILY RECOVERING AND IS GOING TO LOOK UP THE 0.5 FIB LVL. ONCE THIS IS ACHIEVED, IT WILL BE TESTED AS RESISTANCE AND CONTINUES WITH THE FALLING PRICE ACTION. THIS WOULD ALSO BE LOGICAL SINCE THE LOCATION OF THIS LVL IS IN PREVIOUS SUPPORT ZONE. THIS ZONE WOULD BE TESTED AS A RESISTANCE ZONE.
BEARISH;
CURRENTLY, IT LOOKS LIKE WE ARE BREAKING THROUGH THE BOTTOM OF THE PATTERN. THIS IS NORMAL SINCE IT'S A RISING WEDGE. WE CAN EXPECT A PRICE TARGET OF APPROXIMATELY $9600. WE COULD FIND SUPPORT ON THE IMPORTANT TREND LINE (DARK BLUE), AS LONG AS WE STAY ABOVE THIS LINE, THERE IS NO REASON TO PANIC. IF WE HAVE A CLOSURE UNDER THIS LINE, WE CAN EXPECT FURTHER DOWNWARD PRICE ACTION. ALSO THE IMPORTANT SUPPORT ZONE (GREEN BOX) WOULD BE BROKEN.
IT'S IMPORTANT TO KNOW THAT, CURRENTLY, EVERYONE FOCUSES ON THAT "IMPORTANT" CME-GAP AND SO PROBABLY A LOT OF BUYER ORDERS HAVE BEEN PLACED AROUND THAT LEVEL. IN MY OPINION, IF WE GO TO LOOK UP THIS LVL,WE WILL JUST BREAK THAT LVL AND HAVE HEAVY DOWNWARD PRICE ACTION TO CATCH EVERYONE BY SURPRISE. DON'T FORGET, WE ARE TALKING ABOUT BTC!
BE PREPARED!