BitcoinLong
Wedge Pattern on Bitcoin's Chart - Investors Take Risks
Updated
Hello,
The optimistic break out of a possible bullish wedge pattern suggests potential price action of reclaiming the 97.3k price level.
The white trendlines mark the borders of a falling wedge pattern, which is usually a bullish pattern. The upward break out from the pattern further indicates a bullish scenario. The bullish chart pattern aligns with technicals like MACD, signaling a weakening bearish momentum. Per the wedge patterns' dimensions, if the price returns to the wedge and hits stop loss levels like 96.5k, the bullish scenario can be considered invalid. Otherwise, a minor pullback is possible to the upper white trendline until BTC picks up bullish momentum and volume. The volume profile shows relatively minimal interest at the current levels. So, I expect BTC to move out from these levels soon. Achieving the target of 97.3k would not only fulfill the bullish potential according to the dimensions of the wedge pattern but also bring the price to levels where investors are interested in trading.
Sentiment:
As of November 2024, the market sentiment for Bitcoin is extremely bullish. This is reflected in the Crypto Fear and Greed Index, which currently sits at 88, indicating extreme greed. This high level of optimism suggests that investors are highly confident in Bitcoin's future and are willing to take on more risk in anticipation of further price increases.
Global economics:
The ongoing strategic competition between the US and China continues to shape the global economic and political landscape, impacting trade, technology, and security. Competitors may recognize the potential to exploit Bitcoin, which will help the price to reach higher levels.
Risk management:
I encourage you to configure your stop loss and diversify your investments to reduce risk.
Regards,
Ely
The optimistic break out of a possible bullish wedge pattern suggests potential price action of reclaiming the 97.3k price level.
The white trendlines mark the borders of a falling wedge pattern, which is usually a bullish pattern. The upward break out from the pattern further indicates a bullish scenario. The bullish chart pattern aligns with technicals like MACD, signaling a weakening bearish momentum. Per the wedge patterns' dimensions, if the price returns to the wedge and hits stop loss levels like 96.5k, the bullish scenario can be considered invalid. Otherwise, a minor pullback is possible to the upper white trendline until BTC picks up bullish momentum and volume. The volume profile shows relatively minimal interest at the current levels. So, I expect BTC to move out from these levels soon. Achieving the target of 97.3k would not only fulfill the bullish potential according to the dimensions of the wedge pattern but also bring the price to levels where investors are interested in trading.
Sentiment:
As of November 2024, the market sentiment for Bitcoin is extremely bullish. This is reflected in the Crypto Fear and Greed Index, which currently sits at 88, indicating extreme greed. This high level of optimism suggests that investors are highly confident in Bitcoin's future and are willing to take on more risk in anticipation of further price increases.
Global economics:
The ongoing strategic competition between the US and China continues to shape the global economic and political landscape, impacting trade, technology, and security. Competitors may recognize the potential to exploit Bitcoin, which will help the price to reach higher levels.
Risk management:
I encourage you to configure your stop loss and diversify your investments to reduce risk.
Regards,
Ely
Trade closed: target reached
Bitcoin hit the target price of 97.3k. You may observe the target in the green box at the top of the white arrow. I set a strict stop loss for this trade, but one that depends on the falling white trendline of the upper wedge. I mentioned that a pullback to this trendline was possible, which indeed played out. If you traced the white line with your stop loss, your position could have survived the pullback, which was another opportunity to enter the trade. If you followed the configuration, you made +1.5% ROI, +15% with x10, and +150% with x100 leverage. I can't recommend leverages, though. Pullbacks like these could liquidate your position even if you got the target price right.
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