Bitcoin - Wedge Structure With a Potential For One More Drop

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Hello Traders!

The end of this wedge set up is closing in within the next 3 days.

Bitcoin is yet again forming another potential ABC Bear Flag Formation as it has two previous times.

We also saw a strong support/resistance flip as it tested both the diagonal and resistance as well as the horizontal resistance.

Currently we are sitting on the 78.6% fibonacci level and sitting within the RSI wedge on the 4 hour time frame.

I'm not in a position at the moment and may look for a long position on a breakout from the wedge and a potential short scalp if we break the 78.6% level.

Ideally, the best entry here may be at the $3350-$3390 zone after a 4% drop .

The main bullish point I see is the TD 9 on the 3 day is showing a buy candle, which is the 4th time in the past year since it hit the $20,000 high.

We REALLY need this 200MA hold on the weekly to maintain any bullish hope for the short term and mid term.

I'll be updating over the next 5 days as we see this wedge structure play out.

Let me know what you think below and where you see Bitcoin's price heading.
Comment: Currently at the downtrend resistance and looking to either break up or down from here.

I'm seeing a lot of people go long on Twitter, which makes me think we'll get a stop run.

The volume is so low that the price can get moved either direction. I'm watching buy walls popping up right now, but would not be surprised for a stop run in both directions.

I am still flat with no trade on Bitcoin at the moment. This to me looks like a coin flip and I don't trade coin flips. I trade higher probability set-ups.

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I have a bit smaller Wedge but this upper trendline on the $3,500 offers us some good trading opportunities!

What is that indicator at the bottom of your first chart that shows longs vs shorts?
MJC77 warrenbudget
@warrenbudget, It's the long short ratio. I think there's about 4 to choose from under Indicators
It pays off to have a long-term perspective
Thank you for taking the time to post your analysis. Always appreciated.
Fatanstic & comprehensive BTC update as always @jacobcanfield thank you for sharing! =)
+1 Reply
hey man, great analysis! Whats the shorts longs indicator called please?
+1 Reply
I have the same sentiment as you my friend :D
On the USD side of things I also see Bitcoin having a drop to potentially $3,250 or so and then clearing the wedge.
+1 Reply
BTCUSD H4 Correction up. Checkout the idea detail's and all the update's for the complete picture.

BTCUSD D1 Long Term EW Analysis. Checkout the idea detail's and all the update's for the complete picture.
sdubyag Boon2
@Boon2, seriously... stop filling up every single person’s idea posts with your 2 old charts... now you’ve become a nuisance and no one gives a shit about these 2 charts anymore...
+1 Reply
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