BTC on the 4hr chart appears to be possibly forming a broadening wedge.
As price has been in a fierce battle to hold its current range a brake below the range will not be automatically bearish.
If price can hold the lower trend line of the possible broadening wedge it may actually signal a bullish continuation pattern.
Traders should also expect fake out after fake out as both bulls and bears appear to be near certain their side will take control.
Price is currently forming what appears to be a bearish flag on the short term signaling a smooth move down but with a balanced market it could easily brake out with a fake out forming a right shoulder at the top of the value area before moving down if at all.
Balanced range bound markets can be difficult to trade and extreme caution when it comes to the use of leverage should be exercised.
If price does brake to the downside but bounces off the broadening wedge trend line and then reclaims the range this would be a typical bullish continuation pattern.
If we see a drop but fail to reclaim the value area lower prices are likely to occur.
Trade Accordingly
As price has been in a fierce battle to hold its current range a brake below the range will not be automatically bearish.
If price can hold the lower trend line of the possible broadening wedge it may actually signal a bullish continuation pattern.
Traders should also expect fake out after fake out as both bulls and bears appear to be near certain their side will take control.
Price is currently forming what appears to be a bearish flag on the short term signaling a smooth move down but with a balanced market it could easily brake out with a fake out forming a right shoulder at the top of the value area before moving down if at all.
Balanced range bound markets can be difficult to trade and extreme caution when it comes to the use of leverage should be exercised.
If price does brake to the downside but bounces off the broadening wedge trend line and then reclaims the range this would be a typical bullish continuation pattern.
If we see a drop but fail to reclaim the value area lower prices are likely to occur.
Trade Accordingly
