Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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Bitcoin will likely remain "bullish" for now, but the larger structure it's forming appears to be a rising wedge. If we continue to see volume drop off and the wedge mature it will likely resolve with a big move to the downside. Ideal short entry will be at trendline resistance near 3950-4000, or if the ascending trendline is confirmed as broken.
@IrenaLouis, Closing a daily candle above the 200 week EMA (4115) was the change in behavior I was looking for to consider a move to higher levels. We got that and my target became the next weekly resistance which is between 5250-5350 (100,89,50 week EMA). Now that we have rejected from resistance I would expect to eventually retest the 200 day MA at 4600. If that level fails, weekly support is the 21 EMA at 4330. Closing weekly candles above the 200 EMA changes bias from strong bear to cautious bull. We can become confident bulls after the 100 week EMA at 5250 becomes support and we are closing weekly candles above it.