A decision must be made! This is an update to the potential BiG crown reversal that continues to pose a threat to long entries at this time, as I have been blogging about for a few weeks. We are now trading around the sub-left crown resistance level, which is expected in a crown reversal pattern. The bottom line is, opening investment or swing trades is high risk at this time.
For origin details of this idea please see my post entitled “Bitcoin’s BiG Crown Reversal: Preparations For Possible Extreme” -
We have cleared the short box area, or the 0.618 of the entire bearish swing from $5000 to $3000, and have the formation of a potential rising wedge reversal pattern. This short area was a significant resistance point. Trading above $4550 is bullish, but this may only be the case on smaller time frames. The entire move up from the bottom of the swing could prove to have been a sell on strength event.
Breaching the rising wedge to the upside and closing above $4697 will cast doubt on this idea, and a break of the previous all-time high at $4974 would present us with a strong long buy signal. What’s more, volume signals show a potential declining supply, which could stimulate a markup signature. This declining supply may be the effect of near-term fundamentals in this asset (i.e., the impending hard fork). I will post key levels to watch to the downside and upside later, but for now, please have a look at the data. I will be updating this thread daily.
Cheers! -Erik
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Is this the top?
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Hmmm...short squeeze?... breakout or breakdown? Here are our lines:
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Lets see if we fall back into the bigger wedge
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A wedge extension! Risk to reward is not that great tho. I can't see us breaking the all-time high until we run at it a few times.
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Broke ATH! It was a short sqeeze. Target will be $6200. I'll post a new chart soon. If you haven't joined, you can wait for consolidation and then link up. Notice how alts are suffering.... Hmmm!
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That formation on the 5MIN looks like a bull flag, so buy the support or the breakout!