Make no mistake - we might have just bounced up nicely, but we're still in a heavy downtrend, and we absolutely will have to re-test 6000 at some point. Here's a possible scenario how we could get there:
We just established two new important prices: 7500 is now support, 8500 is strong resistance. Expect BTC to move between those levels in the next few days. First we will be going down along the upper trendline of the falling wedge which we will eventually break up at around 7500 to then rally back towards 8500 where we will once again be rejected. Expect some noisy sidewards trading after that until we then break down to 7200, then 6500 and eventually set up to re-test 6000 levels - which is also the target of the big bear flag you see in the chart.
There will be some excellent long and short opportunities along the way which I will continuously point out. Be careful: This no longer a set and forget let alone HODL setup! Don't just open shorts or longs and wait it out. You will have to work hard for it. If in doubt, short the tops or stay sidelined.
We just established two new important prices: 7500 is now support, 8500 is strong resistance. Expect BTC to move between those levels in the next few days. First we will be going down along the upper trendline of the falling wedge which we will eventually break up at around 7500 to then rally back towards 8500 where we will once again be rejected. Expect some noisy sidewards trading after that until we then break down to 7200, then 6500 and eventually set up to re-test 6000 levels - which is also the target of the big bear flag you see in the chart.
There will be some excellent long and short opportunities along the way which I will continuously point out. Be careful: This no longer a set and forget let alone HODL setup! Don't just open shorts or longs and wait it out. You will have to work hard for it. If in doubt, short the tops or stay sidelined.
Comment:
Possible inverted head & shoulder forming would support idea of breaking out of the falling wedge. Don't trade patterns that haven't formed yet! Price action might change and you should adapt your strategy accordingly.
Comment:
BTC testing resistance at 8500.
Comment:
Scenario invalidated if daily closes above 8500.