Bitcoin's Possible Failure and Retracement
Updated
Currently, the price objective of the broadening wedge has not been hit, that is bitcoin's failure. If the top of the broadening wedge does not hold, then it will most likely retrace.
In White, there was a small ascending triangle/Double top on the 4 hour time frame, and it broke out to the down side, it is possible that BTC will retest the top of the broadening wedge, which is around 10100 to 10000, failure of this area to hold will most likely indicate a retracement to the 6k levels as previously mentioned. This would also void the previous analysis of the parabolic move.
There is still ample space in the 4hr RSI to fail, however, a bounce off of anything above 40 would still be indicative of bullish moment, however, if it fails to bounce in that region, then the daily must be analyzed to identify, whether bearish moment has seeped into a larger time frame. In addition, there is a bearish divergence, however, this may only be worth noting on this time frame.
Previous Analysis:
In White, there was a small ascending triangle/Double top on the 4 hour time frame, and it broke out to the down side, it is possible that BTC will retest the top of the broadening wedge, which is around 10100 to 10000, failure of this area to hold will most likely indicate a retracement to the 6k levels as previously mentioned. This would also void the previous analysis of the parabolic move.
There is still ample space in the 4hr RSI to fail, however, a bounce off of anything above 40 would still be indicative of bullish moment, however, if it fails to bounce in that region, then the daily must be analyzed to identify, whether bearish moment has seeped into a larger time frame. In addition, there is a bearish divergence, however, this may only be worth noting on this time frame.
Previous Analysis:
Note
I expect to see movement such as the orange line, where there is a possible test of the triangle resistance, and then there is a drop, down to test the support of the upper trendline of the broadening wedge, and the continuation of the parabolic move. In addition, i think it is possible for that trendline to fail as support and that a retracement occurs, indicated by the pink line.
The third line, the purple one, is an indication that Bitcoin will consolidate at this price point and then continue its parabolic move.
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