Here's a quick look at the BTC Daily chart . As we can see, the price has been continuing its downtrend within the bigger falling wedge for some time now. The price is currently at the top of the falling wedge, and a rejection here will lead to further downside. The price needs to break above the falling wedge in order to build some bullish momentum. If the 40k support zone can't be held, then the price may very likely revisit the 33k-37k zone. ------------------------------------------- What Is a Wedge in the context of trading?:
"A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are either rising or falling and differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge-shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts.
Key Takeaways for Falling wedges:
1. Wedge patterns are usually characterized by converging trend lines over 10 to 50 trading periods.
2. The patterns may be considered rising or falling wedges depending on their direction.
3. These patterns have an unusually good track record for forecasting price reversals." ------------------------------------------- If you like the content, then make sure to comment and like the post :D
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BTC dictates the market. If BTC falls, then Alts will fall as well. Trade safe!