Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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Bitcoin is at a major pivot point and has gradually moved into the apex of a rising wedge pattern. The under support line being somewhat of a rising parabolic curve.
The price is currently within the zone of important Fibonacci levels, being the 61.8% from the 20k top to 3k bottom, 78.6% from the 3k bottom to 14k top, and the 61.8% from the 14k top to 6k bottom.
Even greater resistance lies above the aforementioned levels, at the macro resistance trend line from the 20k top to 14k top, and the macro descending 8/1 Gann fan .
If the price does not break upwards through the rising wedge pattern relatively soon with large volume , it could get forced back down breaking the parabolic advance to possibly retest the 50% or 38.2% Fibonacci levels of the 14k to 6k move.
If you missed the breakout move up, it is probably better to wait for the correction move down. Don't let FOMO get in the way of the larger picture.
Comment
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If the price breaks and closes below the purple parabolic curve and the green 1/1 Gann fan, it is possible that it moves to the blue box area where the 38.2% Fibonacci level is situated. This area has confluence with the initial uptrend line starting from mid December 2019 to the beginning of January 2020. Further to this, the red 2/1 Gann fan and green 2/1 Gann fan ascend through this region.
Comment
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Note the large volume red candle forming. The price has been rejected twice from the $10 500 region.
The volume point of control (POC) further supports the idea of a possible move to the blue box area.
Comment
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The bullish case if the ascending wedge is broken to the upside, measures to the 78.6% of the 14k-6k move. This would also fill the CME gap between $11 700-$11 800. Measured move of the descending wedge/channel supports this idea if it were to occur.
The bullish case if the ascending wedge is broken to the upside, measures to the 78.6% of the 14k-6k move. This would also fill the CME gap between $11 700-$11 800.
Measured move of the descending wedge supports this idea if it were to occur.
Measured move of the descending wedge supports this idea if it were to occur.