Although things have not been looking great for bitcoin these past few days, it looks like there is a possibility for a reversal over the next few days based on the current trend.
For the past few months, a falling wedge has been forming (dashed green lines) for BTC inside of a larger wedge (dotted blue lines) which looks like it might be in the form of an ascending triangle pattern (both of which are bullish patterns) which may bounce around the 61.8% Fibonacci retracement level from the latest high.
The bullish pattern looks further confirmed by three touches on RSI (dotted yellow line) indicating hidden, bullish, continuation divergence. If there is indeed a reversal, there is a possibility for a bounce out of the inner wedge toward the top of the outer triangle which would potentially form a cup and handle pattern if it continues to play out upward.
However, I should note that if the outer triangle breaks downward (which is quite possible based on other trends such as the S&P or QQQ), then I would imagine further downtrend is in the realm of possibilities.
It should be interesting to see how it plays out over the next few days and indeed feels like a somewhat trepidatious trade, however, I always feel like those moments are often the best times to make a move. But please take caution is all I can say.
That being said, as always, this is not meant in any way as financial advice and is only my opinion, but please like or comment if you agree or have any further thoughts.
For the past few months, a falling wedge has been forming (dashed green lines) for BTC inside of a larger wedge (dotted blue lines) which looks like it might be in the form of an ascending triangle pattern (both of which are bullish patterns) which may bounce around the 61.8% Fibonacci retracement level from the latest high.
The bullish pattern looks further confirmed by three touches on RSI (dotted yellow line) indicating hidden, bullish, continuation divergence. If there is indeed a reversal, there is a possibility for a bounce out of the inner wedge toward the top of the outer triangle which would potentially form a cup and handle pattern if it continues to play out upward.
However, I should note that if the outer triangle breaks downward (which is quite possible based on other trends such as the S&P or QQQ), then I would imagine further downtrend is in the realm of possibilities.
It should be interesting to see how it plays out over the next few days and indeed feels like a somewhat trepidatious trade, however, I always feel like those moments are often the best times to make a move. But please take caution is all I can say.
That being said, as always, this is not meant in any way as financial advice and is only my opinion, but please like or comment if you agree or have any further thoughts.
Comment:
Looks like that took a rather drastic turn below the wedge after I posted, which unless it slingshots upward, it may result in further downtrend in the short term at the very least in my opinion.