BTC analysis, Whats going on ?
Updated
Hello everyone and welcome back.
we are currently at a trading range, price forming a falling wedge ( in a downtrend ) well you can't say whats going to happen exactly after this pattern but usually this means that will have a breakout on the top.
the reason is that we are making lower lows but sellers are getting weaker and weaker, lows are made closer to each other and are unable to make much lower lows.
basically this means that sellers are getting tired. but this cant be our only reason to buy BTC.
people are buying in the green area, and selling their btc on Blue line. those who are shorting btc would probably put stop loss above the blue line ( higher than previous high ) and some other might put it above the red zone or in the red zone, so with the first sharp move toward top, we will have so much stop loss to be hunted, our first zone would be 48 - 49 k right now, turning all the short positions into a buy and causing more rally toward top. we would probably see another fall on the blue line after breakout because more sellers will try to short btc on 49 - 50k zone which makes sense but its only matter of time till they realize what a bad idea is to short btc when a reversal has happened.
So in conclusion we would see something like this:
now this was all about bull market, but if we break down, we are most likely going to pay a visit to 40k and from there we'd decide if we are going further down or thats the reversal point.
Good luck and take care
we are currently at a trading range, price forming a falling wedge ( in a downtrend ) well you can't say whats going to happen exactly after this pattern but usually this means that will have a breakout on the top.
the reason is that we are making lower lows but sellers are getting weaker and weaker, lows are made closer to each other and are unable to make much lower lows.
basically this means that sellers are getting tired. but this cant be our only reason to buy BTC.
people are buying in the green area, and selling their btc on Blue line. those who are shorting btc would probably put stop loss above the blue line ( higher than previous high ) and some other might put it above the red zone or in the red zone, so with the first sharp move toward top, we will have so much stop loss to be hunted, our first zone would be 48 - 49 k right now, turning all the short positions into a buy and causing more rally toward top. we would probably see another fall on the blue line after breakout because more sellers will try to short btc on 49 - 50k zone which makes sense but its only matter of time till they realize what a bad idea is to short btc when a reversal has happened.
So in conclusion we would see something like this:
now this was all about bull market, but if we break down, we are most likely going to pay a visit to 40k and from there we'd decide if we are going further down or thats the reversal point.
Good luck and take care
Trade active
First breakout happened, waiting for pullback
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.