BTC just broke below the rising wedge support. We have a sign that upcoming couple of days is possible to be red. Question is how red. We have 2 possibilities to watch out for. A long scenario is unlikely to happen but it is still in play. We have a %35 chance to go higher and %65 chance that price goes lower.
1) Good news for now is that BTC hasn't revealed a lower high or lower low yet. In case where BTC finds support from the range 6400-6500, above 7400 is still in play. 6400-6500 is a good point for long positioning but broken wedge is alarming and for that reason SL should be tight, just below 6200. If price action manages to go above 7300-7400 level, next range to see a resistance is between 7800-8100.
Entry long: $6400
SL: $6200
Target: $7000-$7200
2) On the near future price may try to break above 7000. If the resistance hold, this is a good point to go short. SL is above 7200. 4 level targets are marked on the chart. Most possible range is between 5400-5800. I am not sure if the price drop extends down to 3750-4500 level but in cases where price had a massive drop, it tends to revisit those lowest areas to see if a further drop is still in play (down to 2500), which means BTC is gonna be quite dead or 4000 holds and we move higher from there.
Entry short: $7000-$7200
SL: $7200
Target: $5400-$5800
Broken wedge:
1) Good news for now is that BTC hasn't revealed a lower high or lower low yet. In case where BTC finds support from the range 6400-6500, above 7400 is still in play. 6400-6500 is a good point for long positioning but broken wedge is alarming and for that reason SL should be tight, just below 6200. If price action manages to go above 7300-7400 level, next range to see a resistance is between 7800-8100.
Entry long: $6400
SL: $6200
Target: $7000-$7200
2) On the near future price may try to break above 7000. If the resistance hold, this is a good point to go short. SL is above 7200. 4 level targets are marked on the chart. Most possible range is between 5400-5800. I am not sure if the price drop extends down to 3750-4500 level but in cases where price had a massive drop, it tends to revisit those lowest areas to see if a further drop is still in play (down to 2500), which means BTC is gonna be quite dead or 4000 holds and we move higher from there.
Entry short: $7000-$7200
SL: $7200
Target: $5400-$5800
Broken wedge: