Hello there trader! Today I will be showing to you my technical analysis on Bitcoin and how the future prices may move. Reminder, this is not financial advice.
To start off, BTCUSDT has been in a falling wedge pattern, which usually indicates a bullish continuation of the trend. However, sometimes falling wedges halt the uptrend and reverse it, just like in the falling wedge #1.
In falling wedge #1 the 100 Day Moving Average was easily broken(highlighted in yellow). In falling wedge #2 The Moving average has not been broken yet, although subject to change.
BTCUSDT has a heavily enforced support at the 40k area. There are 4 supporting elements of the support. The first one is the 40k number itself, a round number. The second one is the 100 SMA. The third one is the 0.382 Fib Line (plotted from the March 2020 Crash to the April 2021 Peak). The fourth one is in the RSI, with RSI bouncing at the 34 Level 4 times. This support is strong, and will be a challenge for the bears to break it.
The RSI has also broken out of its trendline earlier than price, hinting of the possibility of a rally.
Looking at the volume now, it has been steadily decreasing from August until now, hinting of a big breakout of the wedge in either direction.
The time difference between the 2 big dumps in the wedge #2 is 13 days. If the next dump is 13 days after the previous dump and BTCUSDT doesn't manage to breakout of the wedge, we may see a dump on October 3.
So, what is the conclusion of this analysis? We may not see a bullish continuation if price doesn't break the wedge until October 3, but there are several bullish factors already that support a possible bullish continuation, just like the Support lines and the early RSI breakout. What I would do is to wait for the breakout to occur. (Reminder, this is not financial advice)
Thank you for reading my analysis! It would be appreciated if you would give a like and follow.
To start off, BTCUSDT has been in a falling wedge pattern, which usually indicates a bullish continuation of the trend. However, sometimes falling wedges halt the uptrend and reverse it, just like in the falling wedge #1.
In falling wedge #1 the 100 Day Moving Average was easily broken(highlighted in yellow). In falling wedge #2 The Moving average has not been broken yet, although subject to change.
BTCUSDT has a heavily enforced support at the 40k area. There are 4 supporting elements of the support. The first one is the 40k number itself, a round number. The second one is the 100 SMA. The third one is the 0.382 Fib Line (plotted from the March 2020 Crash to the April 2021 Peak). The fourth one is in the RSI, with RSI bouncing at the 34 Level 4 times. This support is strong, and will be a challenge for the bears to break it.
The RSI has also broken out of its trendline earlier than price, hinting of the possibility of a rally.
Looking at the volume now, it has been steadily decreasing from August until now, hinting of a big breakout of the wedge in either direction.
The time difference between the 2 big dumps in the wedge #2 is 13 days. If the next dump is 13 days after the previous dump and BTCUSDT doesn't manage to breakout of the wedge, we may see a dump on October 3.
So, what is the conclusion of this analysis? We may not see a bullish continuation if price doesn't break the wedge until October 3, but there are several bullish factors already that support a possible bullish continuation, just like the Support lines and the early RSI breakout. What I would do is to wait for the breakout to occur. (Reminder, this is not financial advice)
Thank you for reading my analysis! It would be appreciated if you would give a like and follow.
