IS HISTORY ABOUT TO REPEAT ITSELF FOR BITCOIN?
In my last post I promised to publish another chart to show you why i think the rising wedge pattern breakout is legit and why you need to be careful about this pattern.
Incase you haven’t check the analysis, you can go to my last post in order to understand this post.
So like I said In my last post, I told you rising wedge is a bearish pattern but sometimes a bearish pattern can break bullish.
This is a bitcoin chart with same pattern and guess what? Bitcoin formed this pattern at the end of the 2017 bull cycle.
So why do you need to be careful about this pattern?
Well, the reason you should be careful about this pattern is that, A bearish pattern can break bullish and in some cases hit the breakout target before the bearish sentiment comes into play.
What do I mean by that?
Well if you take a look at the pattern, you can see that we met the breakout target of that pattern. The price even went higher that the breakout target but the bearish sentiment later came in and the price later broke back down to play the pattern major role and that was the beginning of 2017 bear market.
So what I’m trying to say in essence is that you should not be too greedy. Make sure you are taking profit because once the price breaks the previous all time high, people will start making ridiculous price predictions because the bulls think the price will keep rising but they forget that the bears already knew this a bearish pattern, so they are just waiting for the right time to step in.
A professional trader don’t chase trade, he let the trade come to him. So the bears are patiently waiting for the right time.
Don’t be too greedy and don’t get carried away.
Incase you haven’t check the analysis, you can go to my last post in order to understand this post.
So like I said In my last post, I told you rising wedge is a bearish pattern but sometimes a bearish pattern can break bullish.
This is a bitcoin chart with same pattern and guess what? Bitcoin formed this pattern at the end of the 2017 bull cycle.
So why do you need to be careful about this pattern?
Well, the reason you should be careful about this pattern is that, A bearish pattern can break bullish and in some cases hit the breakout target before the bearish sentiment comes into play.
What do I mean by that?
Well if you take a look at the pattern, you can see that we met the breakout target of that pattern. The price even went higher that the breakout target but the bearish sentiment later came in and the price later broke back down to play the pattern major role and that was the beginning of 2017 bear market.
So what I’m trying to say in essence is that you should not be too greedy. Make sure you are taking profit because once the price breaks the previous all time high, people will start making ridiculous price predictions because the bulls think the price will keep rising but they forget that the bears already knew this a bearish pattern, so they are just waiting for the right time to step in.
A professional trader don’t chase trade, he let the trade come to him. So the bears are patiently waiting for the right time.
Don’t be too greedy and don’t get carried away.
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