Looking at the 4 hour chart.
BTC Is in a pivotal point at the moment, we are sandwiched between a heavy support cluster, the 0.618 fib level of the 5 waves up, and the $8000 support level. We also have resistance from the Moving averages and the top of the wedge. We are showing regular bullish divergence on the MACD but I wouldn't recommend going long based on that. Seems like a no trade zone until we have confirmation one way or another. Targets are listed based on previous support/resistance areas. I chose not to put the EW of recent action on the chart because it would clutter the chart too much.
In my personal opinion I'm bullish based on descending wedges being a bullish pattern, the bullish divergence on the MACD, and the overall market sentiment. Especially with NASDAQ adding crypto in the coming month(s). But I won't trade until confirmation.
Protect your pockets.
BTC Is in a pivotal point at the moment, we are sandwiched between a heavy support cluster, the 0.618 fib level of the 5 waves up, and the $8000 support level. We also have resistance from the Moving averages and the top of the wedge. We are showing regular bullish divergence on the MACD but I wouldn't recommend going long based on that. Seems like a no trade zone until we have confirmation one way or another. Targets are listed based on previous support/resistance areas. I chose not to put the EW of recent action on the chart because it would clutter the chart too much.
In my personal opinion I'm bullish based on descending wedges being a bullish pattern, the bullish divergence on the MACD, and the overall market sentiment. Especially with NASDAQ adding crypto in the coming month(s). But I won't trade until confirmation.
Protect your pockets.
Comment:
We did get a break above/close above the top of the wedge but remember, it isn't uncommon for a retest of the top of the wedge after a breakout. If we do retest the top of the wedge and it successfully holds as support then it would be a strong buy signal.
Trade closed: target reached:
As expected, we had a retest of the top of the wedge which failed to support price action and subsequently broke lower through the 8k support and landed right in the middle of the targeted zone. Also notice the lack of serious volume when breaking from the top of the wedge. Thats why we always wait for confirmation before going long.