Hi all
The 10 month long downtrend has led to a very bearish marked sentiment. However, I have noticed some important signals pointing to an incoming turn of the marked.
First, BTCUSD has not broken the previous low from June 28th. On Aug 14th BTC printed a higher low. If BTC stays above 5880, a new higher low is made. This is then a clear and unambiguous uptrend.
Second, BTCUSD has over the last week formed a descending broadening wedge suggesting the next move is bullish breakout. Potentially this breakout is sooner rather than later as price now moves within a triangle.
Third, supporting a bullish breakout of the descending broadening wedge are bullish divergences on RSI and stochastic RSI.
BTCUSD is setup for a bullish break if it breaks the upper resistance line of the broadening wedge. This can potentially initiate a cascade by triggering a near ATH BTC shorts covering. A break of the lower broadening wedge line will invalidate the idea.
The 10 month long downtrend has led to a very bearish marked sentiment. However, I have noticed some important signals pointing to an incoming turn of the marked.
First, BTCUSD has not broken the previous low from June 28th. On Aug 14th BTC printed a higher low. If BTC stays above 5880, a new higher low is made. This is then a clear and unambiguous uptrend.
Second, BTCUSD has over the last week formed a descending broadening wedge suggesting the next move is bullish breakout. Potentially this breakout is sooner rather than later as price now moves within a triangle.
Third, supporting a bullish breakout of the descending broadening wedge are bullish divergences on RSI and stochastic RSI.
BTCUSD is setup for a bullish break if it breaks the upper resistance line of the broadening wedge. This can potentially initiate a cascade by triggering a near ATH BTC shorts covering. A break of the lower broadening wedge line will invalidate the idea.
Comment:
Idea went exactly as expected!