Bitcoin is testing the higher time frame supply zone shaded in light blue. Price tends to touch these areas and fall away sharply and should keep a temporary lid on further buying interest for now.
The rising wedge pattern is completing near this area as well. This is a bearish pattern . However, there is always the risk it can pop out the top first before a drop. I'm still expecting price to drop and test the 38.2% Fib retracement as per my rules for trading a rising wedge pattern that coincides with the RSI bearish divergence.
Furthermore, we can also see a head and shoulders pattern forming too.
On the flip side, should price move higher it will likely explode straight through the supply zone .
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
The rising wedge pattern is completing near this area as well. This is a bearish pattern . However, there is always the risk it can pop out the top first before a drop. I'm still expecting price to drop and test the 38.2% Fib retracement as per my rules for trading a rising wedge pattern that coincides with the RSI bearish divergence.
Furthermore, we can also see a head and shoulders pattern forming too.
On the flip side, should price move higher it will likely explode straight through the supply zone .
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
Comment:
Price has returned to the origin of the breakout. Added a small position.
Comment:
Rising wedge on smaller timeframe. RSI has broken trendline to downside. Price is trying to grind higher. Waiting for the exhaustive sell off.
Trade closed: target reached:
Both profit targets reached!
