Well, BTC took one last nose dive to penetrate the lower band of its recent descending wedge (blue), but only momentarily (thankfully). It quickly returned back into the wedge , and then continued straight through it, exiting the wedge to the upside. This should signify that the recent consolidation is finished. But where does it go from here?
Looking back at its previous descending wedge (purple), BTC rose quickly to around point B of the then A-B-C corrective pattern (green on the left), and hovered sideways for a few days to catch its breath before punching up a little more. It is possible it will do the same this time too, rising to the B point of its latest A-B-C correction (green on the right), at around $12,000. It should then pause a bit to catch its breath before punching upward again, just to make sure it has solid footing before its next up leg.
Keep in mind the US FOMC meeting of July 30-31 is expected to deliver an interest rate cut in the US of a quarter of one percent. This should see the USD fall a bit immediately thereafter. Yet the dollar could move down even before that meeting in anticipation of it. And all BTC aficionados know what this means... a weakening dollar means a strengthening BTC . Let's see if that's how it goes.
Looking back at its previous descending wedge (purple), BTC rose quickly to around point B of the then A-B-C corrective pattern (green on the left), and hovered sideways for a few days to catch its breath before punching up a little more. It is possible it will do the same this time too, rising to the B point of its latest A-B-C correction (green on the right), at around $12,000. It should then pause a bit to catch its breath before punching upward again, just to make sure it has solid footing before its next up leg.
Keep in mind the US FOMC meeting of July 30-31 is expected to deliver an interest rate cut in the US of a quarter of one percent. This should see the USD fall a bit immediately thereafter. Yet the dollar could move down even before that meeting in anticipation of it. And all BTC aficionados know what this means... a weakening dollar means a strengthening BTC . Let's see if that's how it goes.
Comment:
Oh, and the last time it exited its previous wedge (purple), BTC had to clear point A before the rise could be considered genuine. This time, it should also clear its recent point A, around $11,000, before this upside move could be considered genuine. And that's where we are right at this moment. It's the moment of truth, as they say.