BTC is currently moving down in a falling wedge, which is a bullish reversal pattern.
RSI shows a clear bullish divergence, indicating the slow-down of the selling momentum.
Ideal would be if the volume reduced slowly as we're nearing the wedge resistance, indicating we're bottoming out here, and then a volume spike on the breakout of the wedge would be a good confirmation of the upward movement.
IF the price breaks out of the wedge, then the targets are below.
First target: 8300
Second target: 8950
Even though TA shows a good potential move up, be careful since we are still in a major downtrend overall, and any movement upwards is still just a temporary retracement before (currently likely) contination of the fall, and NOT an overall trend reversal (yet).
Still, we can make some nice profits on this move up.
As always, do not enter the trade unless you see confirmation (price breaking out of the wedge with good volume and closing above it).
If the price breaks down of the wedge, this pattern is invalidated, so use the support of the wedge as a stop-loss.
RSI shows a clear bullish divergence, indicating the slow-down of the selling momentum.
Ideal would be if the volume reduced slowly as we're nearing the wedge resistance, indicating we're bottoming out here, and then a volume spike on the breakout of the wedge would be a good confirmation of the upward movement.
IF the price breaks out of the wedge, then the targets are below.
First target: 8300
Second target: 8950
Even though TA shows a good potential move up, be careful since we are still in a major downtrend overall, and any movement upwards is still just a temporary retracement before (currently likely) contination of the fall, and NOT an overall trend reversal (yet).
Still, we can make some nice profits on this move up.
As always, do not enter the trade unless you see confirmation (price breaking out of the wedge with good volume and closing above it).
If the price breaks down of the wedge, this pattern is invalidated, so use the support of the wedge as a stop-loss.
Comment:
Touching the resistance of the wedge. Great momentum! This is what we want to see. Could be slight pull-back before breaking out of the wedge, but it can easily happen that this momentum carries this and pushes through.
Trade active:
Boom. Broke out of the wedge.
Comment:
First target reached already. 8300.
Comment:
Expecting a pullback to around 8100-8000 area.
Trade closed: target reached:
Now we will have some retrace, and based on the current momentum, we will probably go above 9k, but that's for another chart.
This was a nice 1600+ points profit.
This was a nice 1600+ points profit.