BTC/USD Pulling Back - Chance to rebuy lower
Rising wedge is a reversal (bearish) pattern. If confirmed, it will give us new opportunity to rebuy BTC at lower, more attractive prices.
As I'm writing this, BTC/USDT is touching the lower line of the wedge, but if we look at the RSI and the volume, we can see that it's more likely that the rising wedge will be broken down. Another factor is that this rising wedge appears right at the main downtrend resistance red line (see my previous BTC chart linked below for a bigger picture), which indicates this rally is losing steam, and a pullback is necessary in order to start a new, stronger rally upwards, which will have better chances of breaking the main downtrend line mentioned above.
Targets:
1. 10223 (0.382 Fib retracement line)
2. 9859 (0.236 Fib retracement line)
Wait for a confirmation (breaking down of the lower line of the wedge and closing below it) before starting the trade.
This pattern will be invalidated if the price pushes above 11230 without going below the wedge (though highly unlikely).
As I'm writing this, BTC/USDT is touching the lower line of the wedge, but if we look at the RSI and the volume, we can see that it's more likely that the rising wedge will be broken down. Another factor is that this rising wedge appears right at the main downtrend resistance red line (see my previous BTC chart linked below for a bigger picture), which indicates this rally is losing steam, and a pullback is necessary in order to start a new, stronger rally upwards, which will have better chances of breaking the main downtrend line mentioned above.
Targets:
1. 10223 (0.382 Fib retracement line)
2. 9859 (0.236 Fib retracement line)
Wait for a confirmation (breaking down of the lower line of the wedge and closing below it) before starting the trade.
This pattern will be invalidated if the price pushes above 11230 without going below the wedge (though highly unlikely).
Trade active:
Broke down of the wedge.
Comment:
*10.011 USD
Comment:
First target reached.
Trade closed: target reached:
The price reached 10220.23 USD, which was our first retracement target (10223).
If you bought there, you literally bought (or closed the short) at the bottom.
The price seems to be consolidating along the main resistance line now, which is a good sign (being strongly rejected from it immediately would be a bad sign and would indicate we're going to retest the bottom of the channel again).
For now we wait. We either get a decisive breakout and break this main resistance, which would be a strong buy signal, or the price will retrace lower again.
I will publish a new chart when a good setup appears.
If you bought there, you literally bought (or closed the short) at the bottom.
The price seems to be consolidating along the main resistance line now, which is a good sign (being strongly rejected from it immediately would be a bad sign and would indicate we're going to retest the bottom of the channel again).
For now we wait. We either get a decisive breakout and break this main resistance, which would be a strong buy signal, or the price will retrace lower again.
I will publish a new chart when a good setup appears.
There is another fib support line at 1010 USD which I haven't showed in the main chart above (so I'm showing it here). It is also a valid target to watch for price reversal and bounce upwards.
Plus, 10k serves as a psychological support as well.