A Tale of Two Wedges
BTC has been struggling under the weight of massive overhead resistance--from the recent Death Cross, from having broken a major trend support line, from Weekly bearish divergence, and so on. Retail investors are "extremely fearful" and calls of impending doom are everywhere--meanwhile, those in short positions are euphoric. All this is setting the stage for a potentially massive Short Squeeze. This isn't just a "feeling", there are plenty of indications in the chart that support a big bounce from these levels. We've had recent bullish divergence on the daily chart, volume is dwindling (suggesting sellers are exhausted), but what I'm really focused on is the Falling Wedge pattern we're in...
I've drawn two Falling Wedges on the chart: one from the candle Wicks (Blue) and the other from the candle Closes (Orange). Both only strengthen my conviction that a bullish break will happen. The question is "When will it break?". The blue wedge suggests we break out above 40000. The orange wedge suggests we may go deeper into the 30,000-40,000 range. My personal bias is that we breakout before 40,000. Either way, this isn't a time to fear.
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These are my personal views and not financial advice. Please do your own research before investing.
I'd love to hear your thoughts, ideas and feedback. Feel free to Comment and I'll try and get back to you quickly.
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I've drawn two Falling Wedges on the chart: one from the candle Wicks (Blue) and the other from the candle Closes (Orange). Both only strengthen my conviction that a bullish break will happen. The question is "When will it break?". The blue wedge suggests we break out above 40000. The orange wedge suggests we may go deeper into the 30,000-40,000 range. My personal bias is that we breakout before 40,000. Either way, this isn't a time to fear.
----------------------------------------------------------------
These are my personal views and not financial advice. Please do your own research before investing.
I'd love to hear your thoughts, ideas and feedback. Feel free to Comment and I'll try and get back to you quickly.
If you appreciated this analysis, consider Liking or Following. Thanks!
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