BTC is currently moving in a rising wedge, which is a bearish pattern indicating lack of buying momentum.
If the price breaks down from the wedge support line, then we have a confirmation for a move down.
Targets are:
1. 8472
2. 8252
If the price manages to push above the upper line of the wedge, then the pattern is invalidated (highly unlikely at this moment).
Movement down is necessary here in order to see a stronger bounce with better momentum from one of the support lines, which could take the price to higher levels once again.
Good luck!
If the price breaks down from the wedge support line, then we have a confirmation for a move down.
Targets are:
1. 8472
2. 8252
If the price manages to push above the upper line of the wedge, then the pattern is invalidated (highly unlikely at this moment).
Movement down is necessary here in order to see a stronger bounce with better momentum from one of the support lines, which could take the price to higher levels once again.
Good luck!
Trade active:
The wedge broke down.
Comment:
2nd target reached!
If we don't bounce from here, next target is 8035-8085 area.
If we don't bounce from here, next target is 8035-8085 area.
Comment:
Doesn't seem like a real bounce yet. But note the precision of Fib lines:
Comment:
Touched 8032 (0.618 fib line), which was the third target, very precisely again. I don't see a real bounce yet.
Comment:
Could go a bit sideways from here, but any upward movement is likely to be at 8250-8420 area.
The price probably needs to go below 8k for a real bounce.
The price probably needs to go below 8k for a real bounce.
Comment:
"but any upward movement is likely to be (rejected) at 8250-8420 area." (missed a key word there)
Comment:
Next target: 7720
Comment:
Looks like we've got a bounce here. Still hard to say if it's a fakeout.
Comment:
If this move doesn't get a proper followup (more green candles with increasing volume), then this is most likely just shorts getting squeezed and closing their positions due to an unexpected spike.
The price is forming a bull flag as I write this though.
The price is forming a bull flag as I write this though.
Comment:
When looking at breakouts such as that one, "the volume speaks volumes". This is why it's not good to just FOMO into a trade. See if there's a followup. See if there's a higher low on the retrace. In this case, if you look at the volume after that initial spike, that is a good sign to stay back and observe.
The fact that the price couldn't stay up for much long after such a spike shows us that the bulls are very weak now, and that means that even lower prices are needed for a better bounce.
The target I mentioned above 7720 was again hit perfectly up to a cent.
However, this is, again, not a real bounce from it.
My next target is 7530. If that doesn't hold, then 7320, which is the next Fib retracement line (and they have proven to be perfect targets so far on this chart).
The fact that the price couldn't stay up for much long after such a spike shows us that the bulls are very weak now, and that means that even lower prices are needed for a better bounce.
The target I mentioned above 7720 was again hit perfectly up to a cent.
However, this is, again, not a real bounce from it.
My next target is 7530. If that doesn't hold, then 7320, which is the next Fib retracement line (and they have proven to be perfect targets so far on this chart).
Comment:
Looks like another attempt to go up. After the last fakeout, be very careful and see if there are signs of a real brakeout, with followup and volume, and if it can make a higher low when it retraces (and not crash even further down).
Trade closed: target reached:
All the targets were reached, and the price hit exactly the 7720 level I mentioned above before bouncing up.
I will publish a new chart for another move now.
I will publish a new chart for another move now.
Based on this impulse, the price might reach even lower levels than 8250. But let's see.