Bitcoin - Potential Falling Wedge - Bullish Scenario
Whilst the price action on bitcoin is quite bearish at present time, there may be light at the end of the tunnel in the form of a potential falling wedge (typically a bullish reversal pattern).
Interestingly, the top declining trendline coincides with the 3 day, 21 ema, therefore confirmation of a breakout would be as simple as 2 closes (with strong relative volume) above the top trendline, or 2 closes (again with strong relative volume) above the 3 day, 21 ema.
I offer this potential bullish scenario, for two reasons, firstly, sentiment in the space is beginning to turn decidedly bearish (good contrarian indicator) and second, the crypto market is notoriously unpredictable and as a result having 2 potential scenarios (one bearish and one bullish) is critical to long-term success in the space.
Personal View:
If i were pressed to come down on one side or the other, either bullish or bearish, due to the huge compression in bitcoin and especially the altcoin market (see my other analysis), and due to crypto's propensity to surprise everyone with rip your face off rallies and death defying drops. I am leaning towards a surprise rally, this may come about after one more sharp drop, or it may come out of the blue, but i am leaning towards a surprise bounce.
That being said, i am certainly not blind to the price action, which as i stated earlier, is decidedly bearish.
Let me know what your thoughts are, do you see a surprise rally or another hard drop?
Interestingly, the top declining trendline coincides with the 3 day, 21 ema, therefore confirmation of a breakout would be as simple as 2 closes (with strong relative volume) above the top trendline, or 2 closes (again with strong relative volume) above the 3 day, 21 ema.
I offer this potential bullish scenario, for two reasons, firstly, sentiment in the space is beginning to turn decidedly bearish (good contrarian indicator) and second, the crypto market is notoriously unpredictable and as a result having 2 potential scenarios (one bearish and one bullish) is critical to long-term success in the space.
Personal View:
If i were pressed to come down on one side or the other, either bullish or bearish, due to the huge compression in bitcoin and especially the altcoin market (see my other analysis), and due to crypto's propensity to surprise everyone with rip your face off rallies and death defying drops. I am leaning towards a surprise rally, this may come about after one more sharp drop, or it may come out of the blue, but i am leaning towards a surprise bounce.
That being said, i am certainly not blind to the price action, which as i stated earlier, is decidedly bearish.
Let me know what your thoughts are, do you see a surprise rally or another hard drop?
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.