BTC/USD is moving in a falling wedge (bullish reversal pattern).
Two important things to watch for:
1. A breakout of the upper resistance of the wedge (area 9780 - 9820) will confirm a move up.
First target is the red downtrend resistance line where BTC got rejected a few days ago. We will at least retest it, so it will be a good place to lock in some profits there. If BTC manages to break out of the red resistance line as well, then that will give us new targets to aim for (11768, previous local top)
2. A breakdown from the lower support line of the wedge (and the main blue support line) will signal movement down to 8894-8216 zone.
Place stop loss just below the blue support line (important, because the market could break down further if this support is broken).
Wait for a confirmation of either of these two scenarios before starting a trade.
Two important things to watch for:
1. A breakout of the upper resistance of the wedge (area 9780 - 9820) will confirm a move up.
First target is the red downtrend resistance line where BTC got rejected a few days ago. We will at least retest it, so it will be a good place to lock in some profits there. If BTC manages to break out of the red resistance line as well, then that will give us new targets to aim for (11768, previous local top)
2. A breakdown from the lower support line of the wedge (and the main blue support line) will signal movement down to 8894-8216 zone.
Place stop loss just below the blue support line (important, because the market could break down further if this support is broken).
Wait for a confirmation of either of these two scenarios before starting a trade.
Comment:
Touching the resistance line
Trade active
Comment:
First target reached at 0.236 Fib resistance.
Expect a slight pullback before going for another run to retest the red resistance line.
Expect a slight pullback before going for another run to retest the red resistance line.
Comment:
Trade closed: target reached:
Main target reached. Now we are at a downtrend resistance line (red). If BTC manages to break above it and close a candle (stay) above the line, then we are going higher, and next target would be 11765 USD.
Otherwise, we will have a pullback first, before retesting the resistance line again, and/or breaking above it.
Otherwise, we will have a pullback first, before retesting the resistance line again, and/or breaking above it.
