We have a falling wedge forming pattern (reversal) on the 4h chart here wolves, the end of the wedge landing in a heavy support zone with 2 main supports at 8120 and 7850 creating a breakout zone. We have just bounced off the first support, however, with vol still low we are expecting to be rejected from the wedge resistance and move down to the second support where we will gain the volume needed and breakout from the wedge and test the 10k mark once again.
Here is a look at the bigger picture -
Here is a look at the bigger picture -
Comment:
We have touched the falling wedge support line with a nice bounce, meaning the support is still quite strong. We are now testing the old support turned resistance at 8100. With the market losing $43 billion over the last 3 days, it appears consensus had the opposite effect we were expecting, with alts suffering as well.
Comment:
Not much new to report here wolves, following the original idea well, bounced strongly off the wedge support headed to test the resistance, volume still way too low to breakout from the wedge, still believe we will reject from the resistance and bounce from the 7800-7900 zone for a breakout. Have buys set for long positions spread between 7800-7900 and sit back and enjoy the show.
Comment:
Broken out of the falling wedge, slightly earlier than anticipated and volume is still low, with that in mind, going to hold off opening a position for now.
Comment:
We have formed an inverse head and shoulder pattern (reversal pattern) to break out of the falling wedge (reversal pattern) and have hit our first resistance at 8600. Using the continuation of the IH&S neckline as support and the 8600 resistance level we look to be forming what looks to be an ascending triangle (bullish continuation pattern) which is highlighted in yellow. We should see some sideways movement within the ascending triangle before moving up. We have set some lower buys around the support line at 8450 to try and catch a nice long position.
BTC LONG
BUY: 8450/8250
TARGETS:
8600
8900
9200
STOP LOSS: 8000
BTC LONG
BUY: 8450/8250
TARGETS:
8600
8900
9200
STOP LOSS: 8000