I've spotted a descending wedge on our daily. Until we break out of this AND CONFIRM, either to the upside or downside, I do not think I will be a buyer.
Once we break however, I will be looking for good opportunities to enter.
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Resistance power of the descending TL has been confirmed once again. Will we go down now or break above early?
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Re-drawing the upper TL of the descending wedge. I think we have another $100 or so to go before resistance? We either break out and above today and confirm with the next daily candle opening above this wedge OR the wedge keeps us inside and we break down with big RED candle tomorrow. We should know by later on this evening EST.
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Bitcoin staying tight. Still coiling. Don't have much time left before it has to show it's cards. I think by Friday morning we'll know. Weekend at the very latest. Will we break out of this wedge or not? Remember, breaking out is not enough. We must open the next candle outside of the wedge AND close before we have our confirmation. We can either do this ABOVE the wedge OR BELOW. But as long as this wedge holds us inside, I am not a buyer. My position on this strategy may change as we go lower and closer to the bottom tip of this wedge. This all depends on combinations of additional correlated signals. I will update this post as we go. Watch closely here. Bitcoin is about to show us it's cards!
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I just realized you all may not know why I think we'll know by this weekend whether or not we stay in the larger RED wedge. The reason being that there is a smaller wedge forcing that decision. That smaller wedge is the bottom BLACK uptrend line intersecting with the falling TOP RED trendline. This smaller wedge will either force us UP and OUT of the larger descending RED wedge OR it will tell us whether or not we will be staying within the descending RED wedge to continue downwards for a few more days / weeks. Hope that makes sense.
Where do you think will be good entry points and how long do you think this uncertain trend will last before showing confirmation ? Don't forget that the major Chinese exchanges still haven't traded out all of their bitcoins and they're not due to close until October so it potentially could last into next month, or do you think the immediate impact from China is now over ?
stewdamus
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@Miner224121, The major volatility swings are over but I have a hunch we will continue to bleed slowly down until October. Whether we break above or below the descending wedge, I do not know. I only know that a break to either side is where I start to look to get back in.