BTCUSD to test 20-ma weekly

BTC is set to test the 20-ma weekly in the upcoming month/weeks. This moving average is lined up at the moment around $4500. The longer BTC takes to reach the 20-ma weekly the lower becomes the target. After noticing the weakness showed by BTC above 4k, I believe it needed another push or a re-test of the 200-ma weekly. While BTC did not perfectly touch the moving average for a matter of $30, it received a good bounce to sustain a rally forward to the 20-ma weekly. Indicators are in the oversold region, leaving quite some space for the next leg up. Also, the pattern has formed a falling wedge with good chances of breaking-out on the upper side. Volume has been descending during this bullish wedge which adds credibility of a breakout. I will keep posting updates as we go forward. Please make sure to check out my previous posts, click like and follow!

Comment:

Volume is not looking so good for this small rally today. Overall, a another test of the 200-ma weekly ($3285) or the 50-ma monthly ($3040) is still possible before the big rally up toward the 20-ma weekly ($4400 at the moment).

Comment:

Everything seems bullish, however this is a possible bearish break of the current price action

If it does break down, then the target is right about where the 200-ma weekly is located ($3290). If the weekly candle closes right there, that could be a good area for a big bounce.

Comment:

Wedge broke down as expected but BTC found support at $3421. I think we should go up to $3540 now, however if we don’t break that resistance quick it should break down again and probably test the lower support of the falling wedge. Too early to tell. If $3540 break, then we should expect a strong rally to the upside.

Comment:

This is what I have in mind. One more leg down the breakout from the falling wedge. Breakout will be invalidated if we price dives below $3240. However, if we see a bounce around or above there, the we could expect a breakout to the upside soon after.