BTCUSD Possible Falling Wedge Pattern Breakout Trade Opportunity
BTCUSD is possibly forming a falling wedge pattern on the hourly and 4 hourly charts. Breakout trade opportunity once price breaks out of this pattern. Target of around 52500$ if it is a bullish breakout. If this target is achieved, this will probably be a resistance test at the recent top we had 2 days ago at around 52650$.
It is also interesting to note that this falling wedge pattern seems to be of similar shape as the one that was formed down to 43000$ recently and we broke out of. Technically we are currently still on a breakout price movement since the falling wedge breakout at around 46500+$ which has a target of around 57000$.
A safer breakout trade is one that has volume on breakout and one that has volume on that breakout.
Falling wedges are usually more likely to break upwards as these are usually bullish patterns. However, bearish breakouts do happen too and a possible target from this falling wedge depending on where it breaks down from has a target of around 41000+$.
Just sharing an observation. Sorry about the many horizontal lines on this chart. These are just price points of interest i have on lower timeframes.
Only trade what you can afford to lose. Nothing is 100%, ever!
Good luck with your trades.
It is also interesting to note that this falling wedge pattern seems to be of similar shape as the one that was formed down to 43000$ recently and we broke out of. Technically we are currently still on a breakout price movement since the falling wedge breakout at around 46500+$ which has a target of around 57000$.
A safer breakout trade is one that has volume on breakout and one that has volume on that breakout.
Falling wedges are usually more likely to break upwards as these are usually bullish patterns. However, bearish breakouts do happen too and a possible target from this falling wedge depending on where it breaks down from has a target of around 41000+$.
Just sharing an observation. Sorry about the many horizontal lines on this chart. These are just price points of interest i have on lower timeframes.
Only trade what you can afford to lose. Nothing is 100%, ever!
Good luck with your trades.
If there is a further continuation after 52500$ resistance, which is the falling wedge bullish breakout, this area will also form the breakout area for the Inv Heads and Shoulders pattern with the head bottom starting from the bottoming price of 43000$. Take note this pattern is currently not complete and needs the price to get to 52500$ for the right shoulder to be complete.
The target for this Inverse Heads and Shoulders is about 62000$ which will be a new high. Also look for smaller patterns on lower time frames forming within these major patterns on higher time frames where you can choose to enter into the long after breakouts, decide on where to place stop losses in profit and etc.
Just sharing an observation.
Good luck!