Hello Friends and welcome to an updated analysis on Bitcoin. At this point we have touched our Diamond Bottom Target twice. This is where if trading this pattern I'd take profit. The primary reason for this is the Ascending Wedge (orange with blue lines) or Rising Wedge as some call it. I originally thought we were forming an ascending triange but alas it has morphed into a rising wedge.
If you don't know the difference between an ascending triangle (Bullish) and an ascending wedge (Bearish) PM me or comment and I'm happy to explain.
The interesting thing is that this ascending wedge meets up perfectly with the edge of the downtrend line (red dotted line). That is unignorably bearish, I agree. However, I am a big believer in the diamond bottom as a reversal pattern, also the MACD has been in a Symmetrical Triangle for the entire correction from the ATH and it JUST broke to the upside during the breakout of the Diamond Bottom. For these reasons I am long on bitcoin and I think the bottom is in. We are currently forming one HUGE symmetrical Triangle between the rising and falling long-term trend lines (Red Dotted Lines).
My expectation is that we will correct inside the triangle to the target of the Orange Ascending Wedge, which also corresponds to the .236 fib retrace, which is also VERY close to the Top of the Diamond Bottom. That is a perfect spot to create another higher low, and break out of this HUGE Symmetrical Triangle to start our next bull run to 30k-40k.
Overall I am Bullish, I think there is going to be a heathly bearish move, followed by a breakout of the HUGE triangle. If the Diamond is invalidated I may think twice, but otherwise I see a beautiful reversal taking place.
Remember this is just for educational purposes only, I am not trading bitcoin personally, I use it mainly for a market indicator. You should do your own research before trading yourself.
Well like it if you like it and comment if you have a question!
I'm your Falcon Bottom Finder, always looking for THE best entry!
-D
If you don't know the difference between an ascending triangle (Bullish) and an ascending wedge (Bearish) PM me or comment and I'm happy to explain.
The interesting thing is that this ascending wedge meets up perfectly with the edge of the downtrend line (red dotted line). That is unignorably bearish, I agree. However, I am a big believer in the diamond bottom as a reversal pattern, also the MACD has been in a Symmetrical Triangle for the entire correction from the ATH and it JUST broke to the upside during the breakout of the Diamond Bottom. For these reasons I am long on bitcoin and I think the bottom is in. We are currently forming one HUGE symmetrical Triangle between the rising and falling long-term trend lines (Red Dotted Lines).
My expectation is that we will correct inside the triangle to the target of the Orange Ascending Wedge, which also corresponds to the .236 fib retrace, which is also VERY close to the Top of the Diamond Bottom. That is a perfect spot to create another higher low, and break out of this HUGE Symmetrical Triangle to start our next bull run to 30k-40k.
Overall I am Bullish, I think there is going to be a heathly bearish move, followed by a breakout of the HUGE triangle. If the Diamond is invalidated I may think twice, but otherwise I see a beautiful reversal taking place.
Remember this is just for educational purposes only, I am not trading bitcoin personally, I use it mainly for a market indicator. You should do your own research before trading yourself.
Well like it if you like it and comment if you have a question!
I'm your Falcon Bottom Finder, always looking for THE best entry!
-D
Comment:
Looks like a Head and shoulders to me. Should expect a larger correction than originally thought but we’ll see if it breaks the top of the diamond.
Comment:
Just wanted to put up an update of something I am seeing across the market right now. Also, something that is making me think BULLISH. This is a potential Inverse H&S. The really fun part is that the Target of the Descending Wedge that I posted about last week matches up perfectly with this potential inverse H&S. I LOVE when patterns line up with each other and confirm them. We will see how this plays out.
Just wanted to put up an update of something I am seeing across the market right now. Also, something that is making me think BULLISH. This is a potential Inverse H&S. The really fun part is that the Target of the Descending Wedge that I posted about last week matches up perfectly with this potential inverse H&S. I LOVE when patterns line up with each other and confirm them. We will see how this plays out.
Comment:
We didn't see the ascending wedge break to full potential, but thats fine, not all patterns breakout, and not all patterns break to full potential. Now we are testing that HUGE symmetrical triangle we talked about... hoping to see a break here, but there may be a retracement before we are ready to break. Either way, you can feel the sentiment changing across the market! The Blind Bull sees! I've said it once, and I'll say it again. I'm a big fan of the Diamond Bottom. #FalconBottomFinder
Comment:
We just had our first retrace after so many green candles and it looks like we tested the Diamond Pattern Target as support. We are now watching that .5 fib retrace and the 9k area very closely. I knew it would act as resistance at first, but I hear stampeding hoofs. It sounds like the Bulls are near! Let's watch as this unfolds.
Comment:
Alright, look at bitcoin cruising higher and higher, can’t you feel those permabears transforming? ... there’s a metaphorphasis in the markets.
We found that the .5 retrace and the 9k level offered some resistance at first but has now turned to support as we move higher still, forming higher highs and higher lows in relation to that diamond bottom.
Next level of interest is the .618 retrace right around the 9,600-9,700 level. Once thought there we should head to our Decending Wedge target in the 10k’s I’m already hearing the FOMO start up especially in the crypto twitter realm. The smart money is flooding in, and the noobie money will follow.
We found that the .5 retrace and the 9k level offered some resistance at first but has now turned to support as we move higher still, forming higher highs and higher lows in relation to that diamond bottom.
Next level of interest is the .618 retrace right around the 9,600-9,700 level. Once thought there we should head to our Decending Wedge target in the 10k’s I’m already hearing the FOMO start up especially in the crypto twitter realm. The smart money is flooding in, and the noobie money will follow.
Comment:
Expecting some consolidation at the .786 retrace here in the 9,600-9,700 zone. Then next stop is the descending wedge target.
Comment:
Update:
Like it if you like it, and comment if you have a question. I'm happy to answer!
***This is a reflection of my own educated opinion and should not be viewed as financial advise, please use this for educational purposes only.***
***This is a reflection of my own educated opinion and should not be viewed as financial advise, please use this for educational purposes only.***
WARNING: We did not see the Ascending Wedge break out to it's full potential. Now I see a potential H&S reversal pattern forming on the 4h timeframe that could send us lower to the 7,400-7,300 area. Beware if we break below the neckline. Keep a close eye on the 8k level today and tomorrow.