In my last post on Bitcoin, I was constructive as long as price remained above $9000. We've since climbed, in a chaotic and choppy structure. This market action can sometimes suggest that air-pockets are forming and the market is awash with weak hands - a significant high may be close - perhaps in price, perhaps in time.
For now, we have a clear upwards wedge. In Bitcoin, upwards wedges rarely correct to the downside - could this time be different? There are always exceptions. We also note that should this wedge break to the downside, it would also imply a double top formation on larger timeframes - another formation that rarely corrects the downside in Bitcoin. Bitcoin hates double tops and breakdowns from upwards wedges.
The chart pattern in any other market would suggest that momentum is slowing. However, Bitcoin is both idiosyncratic and has overwhelmingly bullish fundamentals.
I'm flat, awaiting a long or short on the break of the upwards wedge.
For now, we have a clear upwards wedge. In Bitcoin, upwards wedges rarely correct to the downside - could this time be different? There are always exceptions. We also note that should this wedge break to the downside, it would also imply a double top formation on larger timeframes - another formation that rarely corrects the downside in Bitcoin. Bitcoin hates double tops and breakdowns from upwards wedges.
The chart pattern in any other market would suggest that momentum is slowing. However, Bitcoin is both idiosyncratic and has overwhelmingly bullish fundamentals.
I'm flat, awaiting a long or short on the break of the upwards wedge.