Today I present you with Bitcoin's falling wedge pattern, which generally breaks upwards but I am trading this down for a bottom touch first target. Remember though a falling wedge, although a bullish pattern in terms of opportunity, is a pattern of lower highs and lower lows signalling selling pressure and it is best to buy a break of resistance with volume confirmation, it that comes. Price is being held up from the 786 Fibonacci bounce currently.
I am trading this falling wedge by laddering in shorts up to the 0.618 Fibonacci level at $3560, to trade this down to my first target of the 200 weekly moving average which sits at $3310. A double bottom should also act as support temporarily. Bollinger bands are tight up to the daily time frame. 55, 100 and 200 EMAS are also strong resistance on the 4 hour+ time frames. Although I am laddering shorts if price breaks above the 0.618 with volume I will get stopped out and i will be scalping long positions; the highest target for a long would be $3900, where I would expect strong resistance and adds to my idea that we may also be forming another descending triangle, or a symmetrical. I am trading a short, but ready and have a plan should Bitcoin break upwards with conviction. If Bitcoin decides to move sideways out of this wedge I will be looking for another trade setup and position. When a stock moves sideways you should be studying that chart and working out why it is moving sideways, accumulation or distribution. I am ready with the setup and have let my position come to me with a good risk to reward ratio trade.
I am trading this falling wedge by laddering in shorts up to the 0.618 Fibonacci level at $3560, to trade this down to my first target of the 200 weekly moving average which sits at $3310. A double bottom should also act as support temporarily. Bollinger bands are tight up to the daily time frame. 55, 100 and 200 EMAS are also strong resistance on the 4 hour+ time frames. Although I am laddering shorts if price breaks above the 0.618 with volume I will get stopped out and i will be scalping long positions; the highest target for a long would be $3900, where I would expect strong resistance and adds to my idea that we may also be forming another descending triangle, or a symmetrical. I am trading a short, but ready and have a plan should Bitcoin break upwards with conviction. If Bitcoin decides to move sideways out of this wedge I will be looking for another trade setup and position. When a stock moves sideways you should be studying that chart and working out why it is moving sideways, accumulation or distribution. I am ready with the setup and have let my position come to me with a good risk to reward ratio trade.