Bitcoin - Descending Broadening Wedge - Buy & Sell Targets
Updated
Hello,
Bitcoin broke up through the daily downtrend line. However, the log downtrend line is still valid, which is shown in the chart. We can notice that we are in a descending broadening wedge, which usually touches the lower support 3-4 times before breaking out. The initial target when it breaks the falling wedge is going to be 25k$.
There are three possible situations at the moment:
1) Strong break out through the downtrend at 12800$ area. I don't think that this will be the case because it will mean BTC will be in a bullish run for the rest of the year and a new ATH will be achieved within few month?... I really doubt it.
2) A lot of sideway movement, which would mean ALTS will skyrocket.... really doubt it because Bitcoin is taking all of the media attention and the majority of the fresh money are not trading ALTS yet because of its high volatility (even more than BTC).. we can see that the market cap dropped almost by half because all of the new incomers thought the market was crashing, so I don't think they will risk trading alts at the moment.
3) Downtrend to the support of the wedge at around 4.2k which matches previous support/resistance levels, then breaking out of the wedge by early April, May. Then 25k and after that a new ATH by the end of the year (25k+) which is the most logical to me.
This will be my last Bitcoin chart in a while regardless of what happens. I have listed and went through all the possibilities, got nothing else to say. However, I will be posting some small updates on the tele group, and I will be answering your questions in private chat or in comments here. [Only regarding Bitcoin]
Good luck!
DCFreak
Bitcoin broke up through the daily downtrend line. However, the log downtrend line is still valid, which is shown in the chart. We can notice that we are in a descending broadening wedge, which usually touches the lower support 3-4 times before breaking out. The initial target when it breaks the falling wedge is going to be 25k$.
There are three possible situations at the moment:
1) Strong break out through the downtrend at 12800$ area. I don't think that this will be the case because it will mean BTC will be in a bullish run for the rest of the year and a new ATH will be achieved within few month?... I really doubt it.
2) A lot of sideway movement, which would mean ALTS will skyrocket.... really doubt it because Bitcoin is taking all of the media attention and the majority of the fresh money are not trading ALTS yet because of its high volatility (even more than BTC).. we can see that the market cap dropped almost by half because all of the new incomers thought the market was crashing, so I don't think they will risk trading alts at the moment.
3) Downtrend to the support of the wedge at around 4.2k which matches previous support/resistance levels, then breaking out of the wedge by early April, May. Then 25k and after that a new ATH by the end of the year (25k+) which is the most logical to me.
This will be my last Bitcoin chart in a while regardless of what happens. I have listed and went through all the possibilities, got nothing else to say. However, I will be posting some small updates on the tele group, and I will be answering your questions in private chat or in comments here. [Only regarding Bitcoin]
Good luck!
DCFreak
Note
Note
If you are thinking about entering the market... the 1 hr RSI is overbought, so we might see a short term drop soon. (better entry point)Also have a stop loss... the market is far away from being safe and just as it went 1k up in 15 mins, it can easily go down 1k in 5 mins.
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