Hello traders!
We seem to be approaching a crucial decision point, which could give us an answer to whether:
1. The correction is over and we continue our prosperous bull run that has been slaughtering the shorters in the last few months
2. There is further downside before we resume the bull run
A recognisable pattern has painted itself on the 4H chart of Bitcoin (a falling wedge). Trading opportunities will present themselves when we break out of the pattern, preferably to the upside.
Since falling wedges are bullish continuation patterns, there is a higher chance the pattern breaks to the topside (I would say at least 60/40, but most likely 70/30), but we need to wait for
breakouts before entering our positions. If broken to the downside, there is a potential for shorting but I would not do that in a bull market and would much rather just buy more if we do see a drop to lower levels.
It is also worth noticing the pattern might be a bull flag after a significant rally and if/when broken could lead to increased volatility and market strength.
The correction we have witnessed also followed and completed an ABC wave corrective structure, although the wave C could still extend lower.
If the bull flag breaks out to the upside, we first want to see a clear break of 35k and the forming of a first higher-high since starting the corrective move.
I wish you all successful trading and if you liked the analysis, please like the post or follow me, it helps a lot!
You can find more Crypto content and analysis on our website :)
We seem to be approaching a crucial decision point, which could give us an answer to whether:
1. The correction is over and we continue our prosperous bull run that has been slaughtering the shorters in the last few months
2. There is further downside before we resume the bull run
A recognisable pattern has painted itself on the 4H chart of Bitcoin (a falling wedge). Trading opportunities will present themselves when we break out of the pattern, preferably to the upside.
Since falling wedges are bullish continuation patterns, there is a higher chance the pattern breaks to the topside (I would say at least 60/40, but most likely 70/30), but we need to wait for
breakouts before entering our positions. If broken to the downside, there is a potential for shorting but I would not do that in a bull market and would much rather just buy more if we do see a drop to lower levels.
It is also worth noticing the pattern might be a bull flag after a significant rally and if/when broken could lead to increased volatility and market strength.
The correction we have witnessed also followed and completed an ABC wave corrective structure, although the wave C could still extend lower.
If the bull flag breaks out to the upside, we first want to see a clear break of 35k and the forming of a first higher-high since starting the corrective move.
I wish you all successful trading and if you liked the analysis, please like the post or follow me, it helps a lot!
You can find more Crypto content and analysis on our website :)
Comment:
Bullish breakout as we speak. Hope bulls can keep the momentum. The move would be invalidated if we fall below the trendline (currently around 33k).
Comment:
As expected, we got our pullback to the top of the trendline, which should now turn into support should this rally continue. Looking at it, the move was quite fast and savage which is why we might witness a false breakout and a trend reversal. It would be great to keep the price above the previously mentioned level of 33k.
Comment:
So far the chart has been following my prediction - we have seen a breakout, a retracement to the top of the channel and now we are finding support. It still remains crucial that Bitcoin holds 33k and I think a great trading opportunity with low risk currently presents itself due to these factors.
Comment:
We are testing the trendline once again. To be honest I would like to see much more strength in the market, however this looks as a perfect entry with a very tight stop-loss. If we break the support, a huge sell-off could occur as a false-bullish breakout would then be confirmed. Hopefully, 32600 is the low and we take off from here.
Comment:
Not much to add, the support held once again but we have yet to see a strong-enough bounce to start a rally.
Comment:
It's funny how accurate the prediction was and we finally found the strength to rally after bouncing perfectly from the trendline. Altcoins (especially Ethereum) looking very bullish, which is a great sign! A break of the previous high at around 37500 is needed and then our next big resistance would be from 40-42k. Breaking those levels would escalate the price volatility and potentially shoot us straight to the Moon.
Comment:
First targets reached! I expect a 40-41.5k to be a zone of resistance where we may struggle for a while but all in all looking great! Trade is up more than 20% already but I think we go higher in the next week or so. Expecting 44k first and 48k as next targets.
Comment:
We got our retracement from 41k to 38k so I think we are ready to break the ATH and rally towards our targets of 44k and 48k :)