BTC price has been moving in a falling wedge for days now. Falling wedge is a bullish reversal pattern showing lack of selling momentum, and a slow but steady increase in buying/accumulation.
A few days ago the price tried to break out of this wedge, but failed due to lack of followup. Those kinds of rejections at a key resistance such as this usually result in a further fall in price down to lower support levels.
However, after making a double bottom and touching the green daily support trend line multiple times without breaking down, it looks like BTC has built enough support, and the bulls are now trying once again to break out of the wedge and run upwards. The volume of this move up is very good. Even though many have been expecting prices at 4k and 5k (which may still come), for now, BTC is much more likely to consolidate at the current levels, maybe have a small pullback to 6900-6950 (which in this case would be a buying opportunity) and then after the btreakout is confirmed, and the price stays above 7000 level, we will likely see higher prices for now.
Targets:
1. 7200
2. 7440 (strong resistance)
3. 7770 (beginning of the danger zone, strong resistance and possible reversal area)
4. 8000-8100 (this will be testing the main downtrend resistance since the 20k prices, and will be extremely difficult to break out of)
Stop loss for this trade is just below the daily support trendline (green trendline). If that line breaks, we will most likely be seeing prices at 6100-5800 levels (not likely for now, but still possible if the price gets rejected strongly here and revereses down).
As always, lock in partial profits at each of the targets, since not all targets may be reached.
A few days ago the price tried to break out of this wedge, but failed due to lack of followup. Those kinds of rejections at a key resistance such as this usually result in a further fall in price down to lower support levels.
However, after making a double bottom and touching the green daily support trend line multiple times without breaking down, it looks like BTC has built enough support, and the bulls are now trying once again to break out of the wedge and run upwards. The volume of this move up is very good. Even though many have been expecting prices at 4k and 5k (which may still come), for now, BTC is much more likely to consolidate at the current levels, maybe have a small pullback to 6900-6950 (which in this case would be a buying opportunity) and then after the btreakout is confirmed, and the price stays above 7000 level, we will likely see higher prices for now.
Targets:
1. 7200
2. 7440 (strong resistance)
3. 7770 (beginning of the danger zone, strong resistance and possible reversal area)
4. 8000-8100 (this will be testing the main downtrend resistance since the 20k prices, and will be extremely difficult to break out of)
Stop loss for this trade is just below the daily support trendline (green trendline). If that line breaks, we will most likely be seeing prices at 6100-5800 levels (not likely for now, but still possible if the price gets rejected strongly here and revereses down).
As always, lock in partial profits at each of the targets, since not all targets may be reached.
Comment:
The pullback I mentioned is now in progress.
Comment:
The price has formed a symmetrical triangle on the 4h chart.
The direction of the price will be determined based on the breakout upwards or breakdown of the triangle.
So far, we've reached the first profit target I mentioned above in the original chart.
The direction of the price will be determined based on the breakout upwards or breakdown of the triangle.
So far, we've reached the first profit target I mentioned above in the original chart.
Comment:
We have a confirmed breakout of the triangle posted above.
Comment:
Three targets reached! Incredible rally.
Trade closed: target reached:
Reached all targets. 1300 points within 30 minutes. This was epic.
