Bitcoin - Why BTCUSD Could Fall back to $5500 or $3400 SHORT 1D
There is an ascending broadening wedge pattern developing on the daily. Both resistance and support have had 2 touches (a rule for the pattern).
An aggressive approach to this trade would be to enter on the third bounce off resistance, which looks to intersect with the .618 fibonacci retracement of the ATH. In a broadening wedge pattern, one the price breaches support, the target becomes where the formation began, which is around the $5800 - $5000 mark.
If this were to occur, it would not be surprising based on the chart structure to see a h & s develop. Given it would be such a high peak of the head I show a potential scenario of where we could see the neckline and execution of such a pattern if developed...
which would take us right back to around where bitcoin bottomed, around $3400.
Target - ~$5800 - $5000
Entry - Bounce off resistance
SL - Slightly above bounce off resistance of channel (above the channel)
An aggressive approach to this trade would be to enter on the third bounce off resistance, which looks to intersect with the .618 fibonacci retracement of the ATH. In a broadening wedge pattern, one the price breaches support, the target becomes where the formation began, which is around the $5800 - $5000 mark.
If this were to occur, it would not be surprising based on the chart structure to see a h & s develop. Given it would be such a high peak of the head I show a potential scenario of where we could see the neckline and execution of such a pattern if developed...
which would take us right back to around where bitcoin bottomed, around $3400.
Target - ~$5800 - $5000
Entry - Bounce off resistance
SL - Slightly above bounce off resistance of channel (above the channel)
Comment:
Does weekly resistance exist?
Comment:
Curious to see if the .618 breach was a fakeout
Comment:
Lets see of this previously broken resistance now turned support holds!
Comment:
Not uncommon to see this break of resistance on a broadening top pattern on the third test
Comment:
Had to clean this up ^^^
Comment:
Lets see if it breaks support
