Rising Wedge + Rising Triangle = Bearish Outlook for Bitcoin...
After making it to #1 on Trading View, I decided to post one of my real charts. The only thing we need to confirm it is a strong CNBC Bullish Tweet.
On the daily, we've got a MASSIVE descending wedge forming for a strong move to the upside.
On the 240 and the smaller time frames we've got two bearish patterns forming.
The first pattern is a rising wedge that's been forming for the past 3 weeks from August 8th - August 234d.
In a downtrend, rising wedges typically will break to the downside.
So we've got two scenarios that could happen. We can make one more move to the upper resistance before breaking down from the rising wedge (target around $6800.
This could happen with the amount of shorts that are still stacked on Bitfinex, but after we saw the move to $6900 and we didn't get the short squeeze, I doubt we'd get it now.
There is also a large sell wall on Bitfinex around $6500 that is both hidden and on the order books.
The second scenario, and the most likely is a break down from both the rising wedge and the rising triangle.
Breaking both supports, we would see a bounce and retest of the support on the lower end of the wedge.
A bounce around $6300 and back up to the support before falling back down.
We also have a very obvious Head and Shoulders forming that if we make it back down to $6300 zone will complete the pattern.
A retest of that neckline will be very important because if we break it, then we will most likely see a lower retest of supports at $6000 and $5800.
Thanks for following and supporting my CNBC chart! I hope to keep making awesome charts for you guys.
On the daily, we've got a MASSIVE descending wedge forming for a strong move to the upside.
On the 240 and the smaller time frames we've got two bearish patterns forming.
The first pattern is a rising wedge that's been forming for the past 3 weeks from August 8th - August 234d.
In a downtrend, rising wedges typically will break to the downside.
So we've got two scenarios that could happen. We can make one more move to the upper resistance before breaking down from the rising wedge (target around $6800.
This could happen with the amount of shorts that are still stacked on Bitfinex, but after we saw the move to $6900 and we didn't get the short squeeze, I doubt we'd get it now.
There is also a large sell wall on Bitfinex around $6500 that is both hidden and on the order books.
The second scenario, and the most likely is a break down from both the rising wedge and the rising triangle.
Breaking both supports, we would see a bounce and retest of the support on the lower end of the wedge.
A bounce around $6300 and back up to the support before falling back down.
We also have a very obvious Head and Shoulders forming that if we make it back down to $6300 zone will complete the pattern.
A retest of that neckline will be very important because if we break it, then we will most likely see a lower retest of supports at $6000 and $5800.
Thanks for following and supporting my CNBC chart! I hope to keep making awesome charts for you guys.
Comment:
It looks like the unlikely scenario played out and we bounced to the upper edge of the wedge.
We look to be playing out an ABCDE pattern within the rising wedge.
Possible double top around $6800 before a fall.
This would line up with another SEC "rejection" if they choose to announce that this week.
The volume is very weak on this recent rally and is not convincing me that the bulls are fully in control yet.
We look to be playing out an ABCDE pattern within the rising wedge.
Possible double top around $6800 before a fall.
This would line up with another SEC "rejection" if they choose to announce that this week.
The volume is very weak on this recent rally and is not convincing me that the bulls are fully in control yet.
We broke down from the ascending wedge as predicted.
I forgot to add my fibs on this morning so you can see where these bounces are coming from.
We have basically been playing ping pong between the .382 and the .618 fibs from the swing high and swing low.
Bitcoin is currently retesting the former support from the previous ascending wedge.
Continue to hold your short to the .618 buy zone.
Cheers!