The structure that bitcoin has formed on the daily chart can be considered in various ways. Some see a descending wedge there, others a bullish flag. To me, it looks like a descending triangle.
If we check what its projected target is (yellow arrows), we can see that it coincides with the red line drawn by the fixed range indicator. This gives a rather strong signal confirming my bearish hypothesis. Moreover, the RSI indicator shows a huge bearish divergence over several months, which further emphasizes the downward trend.
However, I think that before bitcoin hovers around 20k again we will first see a triangle retest with a possible upward breakout as often happens with descending triangles. Nevertheless, I believe that the breakout will stop at around 28k. From this point we should already be witnessing a massive decline to the previously mentioned target.
If my forecast comes true, bitcoin should eventually print a beautiful head-and-shoulders pattern on the chart, which will eventually turn into a panic sell-off and new lows.
This is not financial advice.
If we check what its projected target is (yellow arrows), we can see that it coincides with the red line drawn by the fixed range indicator. This gives a rather strong signal confirming my bearish hypothesis. Moreover, the RSI indicator shows a huge bearish divergence over several months, which further emphasizes the downward trend.
However, I think that before bitcoin hovers around 20k again we will first see a triangle retest with a possible upward breakout as often happens with descending triangles. Nevertheless, I believe that the breakout will stop at around 28k. From this point we should already be witnessing a massive decline to the previously mentioned target.
If my forecast comes true, bitcoin should eventually print a beautiful head-and-shoulders pattern on the chart, which will eventually turn into a panic sell-off and new lows.
This is not financial advice.
Comment:
It looks like we are in the phase of an upward breakout, exactly as I predicted. In addition, this upward movement will result in a re-test of the huge rising wedge seen on the weekly chart. If I am right, the price should be rejected around the $28500 level.
Comment:
Actually, I think the target is around $29200, as I noticed an inverted head and shoulder on the 4-hour chart:
