Hello guyz,
In this analysis, I will be looking at the 4-hour chart of Bitcoin (BTC) and examining the potential trade opportunity presented by a broken and retested trendline of a broadening wedge pattern.
Bitcoin is currently trading at $29,276, and I have identified a broadening wedge pattern on the 4-hour chart. This pattern is characterized by higher highs and lower lows, indicating increased volatility and indecision in the market. The upper trendline represents resistance, while the lower trendline represents support.
I have taken a short position as the price has recently broken below the lower trendline of the broadening wedge and retested it as resistance. This breakdown suggests a potential bearish move.
Entry Price: $29,369.45
Based on my analysis, I entered a short position at $29,369.45, anticipating a continuation of the bearish trend after the retest of the broken support turned resistance.
Stop Loss: $29,750
To manage risk, I have placed a stop-loss order at $29,750. If the price moves against my position and breaks above the retested trendline, I will exit the trade to limit potential losses.
Take Profit: $27500
My take-profit target is set at $27500, aiming for a potential price reaction at this previous support area within the broadening wedge pattern.
Remember to follow my TradingView account for more updates and analysis. I would love to hear your thoughts and comments on this analysis
In this analysis, I will be looking at the 4-hour chart of Bitcoin (BTC) and examining the potential trade opportunity presented by a broken and retested trendline of a broadening wedge pattern.
Bitcoin is currently trading at $29,276, and I have identified a broadening wedge pattern on the 4-hour chart. This pattern is characterized by higher highs and lower lows, indicating increased volatility and indecision in the market. The upper trendline represents resistance, while the lower trendline represents support.
I have taken a short position as the price has recently broken below the lower trendline of the broadening wedge and retested it as resistance. This breakdown suggests a potential bearish move.
Entry Price: $29,369.45
Based on my analysis, I entered a short position at $29,369.45, anticipating a continuation of the bearish trend after the retest of the broken support turned resistance.
Stop Loss: $29,750
To manage risk, I have placed a stop-loss order at $29,750. If the price moves against my position and breaks above the retested trendline, I will exit the trade to limit potential losses.
Take Profit: $27500
My take-profit target is set at $27500, aiming for a potential price reaction at this previous support area within the broadening wedge pattern.
Remember to follow my TradingView account for more updates and analysis. I would love to hear your thoughts and comments on this analysis