Bitcoin testing supply zone
Updated
Bitcoin is testing the higher time frame supply zone shaded in light blue. Price tends to touch these areas and fall away sharply and should keep a temporary lid on further buying interest for now.
The rising wedge pattern is completing near this area as well. This is a bearish pattern . However, there is always the risk it can pop out the top first before a drop. I'm still expecting price to drop and test the 38.2% Fib retracement as per my rules for trading a rising wedge pattern that coincides with the RSI bearish divergence.
Furthermore, we can also see a head and shoulders pattern forming too.
On the flip side, should price move higher it will likely explode straight through the supply zone .
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
The rising wedge pattern is completing near this area as well. This is a bearish pattern . However, there is always the risk it can pop out the top first before a drop. I'm still expecting price to drop and test the 38.2% Fib retracement as per my rules for trading a rising wedge pattern that coincides with the RSI bearish divergence.
Furthermore, we can also see a head and shoulders pattern forming too.
On the flip side, should price move higher it will likely explode straight through the supply zone .
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
Note
Price has returned to the origin of the breakout. Added a small position.Note
Rising wedge on smaller timeframe. RSI has broken trendline to downside. Price is trying to grind higher. Waiting for the exhaustive sell off.Trade closed: target reached
Both profit targets reached!
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