The descending wedge pattern is still holding. If you had set buy orders at the bottom trend line, merely extending the trend line from the last support into the future, you would be a very happy turtle right now.
Bullish volume is still struggling to push the price upwards, and at the current moment volume is falling off. This is indicative of a lack of faith in Bitcon's bullish movement at this moment in time. Anything can change, but that is the state of volume at the moment. The overall trend is still bearish, and recent price action confirms this both via candlesticks and volume.
The bearish engulfing candle that we see plotted three bars back is quite important, the amount of volume that candle was able to command relative to recent price action lets us know there are plenty of sellers in the market who are still quite hot to trot to sell and short their positions. The bulls did step in as predicted at the opportune time, however as we've discussed ad nauseum important levels only tell us WHERE the bulls might step in (vica versa with the bears). It doesn't tell us whether or not they will be successful. We need volume to confirm movements. Right now, volume is not confirming this bullish movement.
You can see that the area where price found support was not only the ascending trend line, forming still a pattern of higher lows, but it was also a few satoshis short of the 0.236 Fibonacci retracement on the current descending wedge pattern from true high to true low. These are important levels for you to find on your chart when you're plotting out your plan of action. Numbers matter, and observation is required to see how successful a movement is going to be.
Our smoothed Stochastic is signaling that Bitcoin is oversold, and our RSI shows no divergence at the moment.
DMI is still negative, indicating that bearish momentum is still more powerful than bullish momentum, and volume confirms this.
Price also seems to be stalling out, forming a gravestone doji that reversed at the next Fib level, the .382.
If you're predicting a pullback from here, a Fib measurement puts out .618 entry position at 6473.91. Possible scalping targets to the upside could be 6500 and 6550. However the risk to reward ratio here is not worth it, in my opinion. Don't feel the need to trade, I would like to see more bullish volume to come in, and then you could feel more confident taking a long position all the way to the upside of this descending wedge pattern and then re-evaluating.
I will say that we also completed our TD Countdown, with a perfected 13 count which per TD Strategy gives us a buying option. Something to keep in mind.
Bullish factors - bottom of current trend line, completed 13 countdown, oversold stochastic, reversing RSI.
Bearish factors - dominant trend, DMI bearish w/ weak trend, volume, candlesticks.
Bullish volume is still struggling to push the price upwards, and at the current moment volume is falling off. This is indicative of a lack of faith in Bitcon's bullish movement at this moment in time. Anything can change, but that is the state of volume at the moment. The overall trend is still bearish, and recent price action confirms this both via candlesticks and volume.
The bearish engulfing candle that we see plotted three bars back is quite important, the amount of volume that candle was able to command relative to recent price action lets us know there are plenty of sellers in the market who are still quite hot to trot to sell and short their positions. The bulls did step in as predicted at the opportune time, however as we've discussed ad nauseum important levels only tell us WHERE the bulls might step in (vica versa with the bears). It doesn't tell us whether or not they will be successful. We need volume to confirm movements. Right now, volume is not confirming this bullish movement.
You can see that the area where price found support was not only the ascending trend line, forming still a pattern of higher lows, but it was also a few satoshis short of the 0.236 Fibonacci retracement on the current descending wedge pattern from true high to true low. These are important levels for you to find on your chart when you're plotting out your plan of action. Numbers matter, and observation is required to see how successful a movement is going to be.
Our smoothed Stochastic is signaling that Bitcoin is oversold, and our RSI shows no divergence at the moment.
DMI is still negative, indicating that bearish momentum is still more powerful than bullish momentum, and volume confirms this.
Price also seems to be stalling out, forming a gravestone doji that reversed at the next Fib level, the .382.
If you're predicting a pullback from here, a Fib measurement puts out .618 entry position at 6473.91. Possible scalping targets to the upside could be 6500 and 6550. However the risk to reward ratio here is not worth it, in my opinion. Don't feel the need to trade, I would like to see more bullish volume to come in, and then you could feel more confident taking a long position all the way to the upside of this descending wedge pattern and then re-evaluating.
I will say that we also completed our TD Countdown, with a perfected 13 count which per TD Strategy gives us a buying option. Something to keep in mind.
Bullish factors - bottom of current trend line, completed 13 countdown, oversold stochastic, reversing RSI.
Bearish factors - dominant trend, DMI bearish w/ weak trend, volume, candlesticks.
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Subscribe to the Crypto Alpha Report to receive my insights in your inbox daily. Data-driven research to keep you armed and dangerous.
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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.