Before we dive into the analysis: I'm very bullish on Bitcoin and crypto as a whole for at least the coming 3-4 months. I don't think we're going to see a major bearish move, like we saw a couple of months ago, anytime soon. However, it's important to share different views on the topic, hence this analysis. ______________
If we zoom out on the Bitcoin chart, and connect the tops and lows, we can clearly see an ascending wedge pattern appear on the chart. Classically, ascending wedges are bearish reversal patterns.
Following classic TA theory, a bearish break out of this pattern is likely to happen in the coming months. Before that can happen, a reversal from the top dynamic resistance should occur first. No matter if you're bearish or bullish, this trend line will offer some solid resistance since it's going back almost 4 years.
Ideally (bullish) speaking, the price just goes right through the resistance. However, we're quite overextended at the moment, so a bearish reversal from this trend line is likely. Key point is going to be the reversal from the bottom support trend line, if we get there at all.
Interestingly enough, the top resistance of the wedge pattern coincides with the 1.272 Fibonacci extension area in the analysis I made earlier this week.
Happy trading!
Comment
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This analysis should have the "Neutral" tag. Can't edit it for some reason.
My friend, you can si anything if you look long or short enough term:) But, i also expect a correction
FieryTrading
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@OptimoomFX, I'm looking at the next 3 months or so
marinik
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at what level could fall and find new support, at 40k or at 30k? also, i started investing on longer time frames, enter on daily and exit on weekly (usually, for stocks), showing less noise and more trending... ;) probably in January - February could occur this drop, as it usually did last years (for crypto+stocks), especially if FED decides to change policy...
But, i also expect a correction