BTC: Rising Wedge Breakdown (4hr timeframe).
Today has been a bearish day (so far) for cryptocurrencies. Bitcoin is no different. The chart is self explanatory, but to elaborate there is a rising wedge pattern that BTC has validated. My price target is 44300$ (9% profit), my entry is 48900$, and my stop loss is 50700$ (3.73%). The RR (risk to reward ratio) is 2.51. Let's see how this turns out, and I hope we all make some money!
***This was a quick analysis of BTC. For cryptocurrencies I will be posting trade setups when I see them (unlike stocks, which is every other day). This idea is not financial advice, although there is no rule against you following it.***
***This was a quick analysis of BTC. For cryptocurrencies I will be posting trade setups when I see them (unlike stocks, which is every other day). This idea is not financial advice, although there is no rule against you following it.***
Comment:
While I was looking at Ethereum, I noticed there was a head and shoulders pattern that was in development. It occurred to me that Ethereum was probably following Bitcoin, and, lo and behold, there is a head and shoulders pattern in Bitcoin as well. It only goes to show how almost every major crypto (that I know of) follows the general movements of Bitcoin, sometimes even copying the exact patterns Bitcoin has. Anyways, it further proves my rising wedge analysis, as the price target for the head and shoulders is within the general area of the price target for our rising wedge. Here is my chart:
BTW, all indicators point to a rebound in Ethereum (to 3300$) and Bitcoin (to 50k) before the *real* dump occurs. Today was just a taste of what's to come (And I'm still a long-term Bitcoin bull, it's just that for the next week or so things are going to be bearish, in my humble opinion.)
Comment:
I was wrong about the head and shoulders; there won't be a rebound back to 50k. But I'm fine with that, as my original idea is still ongoing. All this means is that there is a lot more pressure from the bears than I anticipated, and my short position will make me money much faster than I thought it would.
There is now a downward channel in BTC (and ETH), which only gives further credence to my original idea. Lets see how this turns out; from here on I will be keeping track of all my trades (excluding the ones I made before August, 2021).
