BitcoinLong
BTCUSD - wedge breakout or fakeout?
Lately several people have noted the wedge formation that has formed over the last couple of months in BTC. The wedge has some positive traits:
1. A tapering of sell volume followed by some large spikes of buying.
2. Formation is fairly clear on both daily (5 touches) and weekly charts.
3. 6000 seems like an obvious level
While on the surface it seems like a pretty good setup, I remain cautious for the following reasons:
1. Resistance from a clearly downward sloping 200ma.
2. Resistance from a very strong (7 touches) down slopping trend line that starts from Feb 2018.
3. Wedge patterns are historically an unreliable pattern.
4. 3000 seems like an obvious level of support.
Two ways to play this setup:
Aggressive
Entry 3900 with stop at 3600 and a target of 4400 and 5500 and 6000.
Conservative
Wait for price to come back down to 3000, and a double bottom to form. This will allow price to have perhaps break the the down sloping trend line and the 200ma. There could be several good double bottom setups with entries anywhere from 3000-4000 with a target of 6000.
1. A tapering of sell volume followed by some large spikes of buying.
2. Formation is fairly clear on both daily (5 touches) and weekly charts.
3. 6000 seems like an obvious level
While on the surface it seems like a pretty good setup, I remain cautious for the following reasons:
1. Resistance from a clearly downward sloping 200ma.
2. Resistance from a very strong (7 touches) down slopping trend line that starts from Feb 2018.
3. Wedge patterns are historically an unreliable pattern.
4. 3000 seems like an obvious level of support.
Two ways to play this setup:
Aggressive
Entry 3900 with stop at 3600 and a target of 4400 and 5500 and 6000.
Conservative
Wait for price to come back down to 3000, and a double bottom to form. This will allow price to have perhaps break the the down sloping trend line and the 200ma. There could be several good double bottom setups with entries anywhere from 3000-4000 with a target of 6000.
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.
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.