BTC Descending Wedge / Bull Flag - PT $51,200
Updated
BTC has quite a few clear bullish things going for it.
First, the bearish three drives harmonic pattern. The green arrows marked show three attempts by sellers to cause a break downward, and three fails to cause that break. Immediately after the third, the price trends upward with consecutive straight green candles with solid volume, and that's exactly what we see here.
If you want more precedent for the above harmonic, look no further than the BTC daily from May of this year to right now. You can see almost the exact same thing happening here. A wick on the initial crash to the range low, then a series of bearish drives which failed to break down significantly below 30k. Immediately after that third bullish drive, the candles immediately gain volume we had never seen in a while, and it was shocking to see BTC's strength.
Second, the descending wedge. You can see a very clean and well defined descending wedge right after the consecutive green candles. This itself is a bullish pattern, and when you consider the support line as well as the fib support thwarting any breakdown attempts from sellers, you can see we're about to go much much higher.
Make sure to set a nice SL, somewhere around 46.5k, since you might get stopped out by those breakdown attempts.
Good luck!
First, the bearish three drives harmonic pattern. The green arrows marked show three attempts by sellers to cause a break downward, and three fails to cause that break. Immediately after the third, the price trends upward with consecutive straight green candles with solid volume, and that's exactly what we see here.
If you want more precedent for the above harmonic, look no further than the BTC daily from May of this year to right now. You can see almost the exact same thing happening here. A wick on the initial crash to the range low, then a series of bearish drives which failed to break down significantly below 30k. Immediately after that third bullish drive, the candles immediately gain volume we had never seen in a while, and it was shocking to see BTC's strength.
Second, the descending wedge. You can see a very clean and well defined descending wedge right after the consecutive green candles. This itself is a bullish pattern, and when you consider the support line as well as the fib support thwarting any breakdown attempts from sellers, you can see we're about to go much much higher.
Make sure to set a nice SL, somewhere around 46.5k, since you might get stopped out by those breakdown attempts.
Good luck!
Note
Clean break as expected and found resistance at a fib.Note
Little weakness here, might be a good idea to set a breakeven stop.Trade closed: stop reached
you know the deal
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