BTC 4hr descending broadening wedge
Updated
As you can see in the past we tend to break out to the upside. But what is more interesting is that we are putting right here you can see on the 4hr starting right from the support that we had, at the end of December of last year, we have actually completed finally, three points of contact on the top and on the bottom and you know that when you get three points of contact, you have an official trend that has formed right, so we have this up here one, two out of the discussed got rejected at this very important level at around 39,000 which I explained why this level was so significant. You can see we actually came down here and touched it But all that aside, you can see three points of contact on the bottom so what exactly are we looking at? Well, it appears that what Bitcoin is forming right now is actually a descending broadening wedge, and you can see it kind of looks like a megaphone, right? It's actually getting wider. It's failing out as we're coming down towards the bottom. Now this does not signal that we're looking for an imminent breakout to the upside today. But if you just simply have and you can just I just did a simple Google search but you can go in you can read the text, you can look at traditional markets falling or excuse me, descending broadening wedges are in fact reversal. Patterns at the bottom of markets. You can see every single I mean look at all the top results that come up. This is usually what happens now it doesn't happen every time. A black swan event stocks could crash 20% But ultimately what we are looking for here is a breakout to the upside now, having a look right here you have seen that we have held this legacy trend. We got rejected three times here at this resistance so this is showing me that on the very very short term, it's going to be difficult for Bitcoin to break out of this level right. So here is the possibility this is sort of the bearish slash bullish, more bullish possibility. But what we could see is actually Bitcoin get rejected here. Again, come back down, actually fall below $30,000 for just a little bit, come down here, catch the bottom of this trend. This would fill all those bids down here that we see around the 29,000 level, this would be the fourth point of contact and double bottom of the large parallel rising channel. And at that point, we would actually look for the breakout. Now according to any of these charts that you look at the price target for this breakout is actually right here, right where the formation started. And if we just draw a simple line right there, you can actually see that that would bring Bitcoin up to right here around the $52,000 level, which is also the mid line of the large parallel channel. Now if we have a look at the time, how long would it take for this move to play out? Well, it depends obviously, but you can see that you know, right here is essentially the beginning of March right here right? So what we could see is February still kind of you know, freak people out, fall down, we could dance below this level tested. And then just as we enter into March, we could end up coming back up to this level. Break out of this with that price target all the way up here and everyone that sold everyone that had it down here because Bitcoin fell below $30,000. That would be the ultimate opportunity.
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