Descending Wedge leads to Inv. H&S leads to... Moon?
Hello All,
This is my first ever publication on TV! Please use the following for educational purposes only.
Looking at the
BTCUSD
4h Chart we can see that Bitcoin has formed and as I'm writing this, broken out of a Descending Wedge pattern. There was a bearish channel formed from the high on 12-17 and the lower high on 1-6, we broke out of that channel on 2-26 but met with overhead resistance we failed to break out above $12k and formed a double top on 3-5 around $11,700. From the double top on we began a symmetrical decent that formed a textbook descending wedge, of which, tested the top of that downtrend channel 3 times confirming it as support before shooting up to break out of the wedge. Looking at the Fibonacci retracement from the low on 2-6 at $5900 to the first peak in the double top at $11,700, we retraced perfectly to the .236 retrace, which lined up perfectly with the third test of the top of the downward channel. Now with a wedge pattern you want to triangulate the signals to understand if it is a clear reversal, and we see there is a positive divergence on the MACD, the volume has created a nice pop to push the breakout out of the triangle. I will wait to confirm that this is a true break from the wedge and not a fake out to place a buy order because we have the .382 resistance in our way but I must say it's looking good to go long.
If the pattern does confirm then I'm thinking we will see bitcoin follow the fib lines and form an inverse head and shoulders pattern by serging out of the DW to the $10,200-$10,400 range then a healthy retracement to the .618 at $9,500 before climbing back to $10,500 where the Inv H&S completes and kicks in again and we start our next bull run. The $9,500 and $10,500 are strong psychological levels so I expect some consolidation at those points. I put a long term Ivs. H&S pattern target of $13,300 that is obviously completely hypothetical as the Inv. H&S isn't even a thing yet, and we are still looking for the Descending Wedge to confirm, but that's my take on the current lay of the land. If you like this analysis please like to help me get my reputation up.
Thank you! Happy Trading!
This is my first ever publication on TV! Please use the following for educational purposes only.
Looking at the
BTCUSD
4h Chart we can see that Bitcoin has formed and as I'm writing this, broken out of a Descending Wedge pattern. There was a bearish channel formed from the high on 12-17 and the lower high on 1-6, we broke out of that channel on 2-26 but met with overhead resistance we failed to break out above $12k and formed a double top on 3-5 around $11,700. From the double top on we began a symmetrical decent that formed a textbook descending wedge, of which, tested the top of that downtrend channel 3 times confirming it as support before shooting up to break out of the wedge. Looking at the Fibonacci retracement from the low on 2-6 at $5900 to the first peak in the double top at $11,700, we retraced perfectly to the .236 retrace, which lined up perfectly with the third test of the top of the downward channel. Now with a wedge pattern you want to triangulate the signals to understand if it is a clear reversal, and we see there is a positive divergence on the MACD, the volume has created a nice pop to push the breakout out of the triangle. I will wait to confirm that this is a true break from the wedge and not a fake out to place a buy order because we have the .382 resistance in our way but I must say it's looking good to go long. If the pattern does confirm then I'm thinking we will see bitcoin follow the fib lines and form an inverse head and shoulders pattern by serging out of the DW to the $10,200-$10,400 range then a healthy retracement to the .618 at $9,500 before climbing back to $10,500 where the Inv H&S completes and kicks in again and we start our next bull run. The $9,500 and $10,500 are strong psychological levels so I expect some consolidation at those points. I put a long term Ivs. H&S pattern target of $13,300 that is obviously completely hypothetical as the Inv. H&S isn't even a thing yet, and we are still looking for the Descending Wedge to confirm, but that's my take on the current lay of the land. If you like this analysis please like to help me get my reputation up.
Thank you! Happy Trading!
Comment:
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.***
