BTC Breakout: The True Picture
BTC has been trading inside the Falling Wedge Pattern in the Chart since the crash of 4th December 2021.
It has maintained it for sometime now and today, price broke out above the Falling Wedge Resistance with strong momentum. The price has also gotten to the 100 Moving Average as you can see on the chart.
Remember that the 100 Moving Average on the 4H Chart (The Blue Colour MA) has been acting as downtrend since 15th November 2021 when the price fell below it.
We need more confirmation to know if this breakout is real or if it is a fake breakout. The simple test is this:
the price has to retest and bounce on the top of the Red Resistance Trendline and then go up. if the price fails to go up and the sellers are able to bring price back inside the Falling Wedge, then this is a failed attempt.
If the test is successful and we push to 50k, then it means we are heading higher to the Red Supply Area at 53k.
If the test fails, then it means sellers have made up their mind to keep price under 50k till the end of the year. The blue demand zone at 46k area will be at serious risk of breaking.
Happy Trading and Happy holidays.
It has maintained it for sometime now and today, price broke out above the Falling Wedge Resistance with strong momentum. The price has also gotten to the 100 Moving Average as you can see on the chart.
Remember that the 100 Moving Average on the 4H Chart (The Blue Colour MA) has been acting as downtrend since 15th November 2021 when the price fell below it.
We need more confirmation to know if this breakout is real or if it is a fake breakout. The simple test is this:
the price has to retest and bounce on the top of the Red Resistance Trendline and then go up. if the price fails to go up and the sellers are able to bring price back inside the Falling Wedge, then this is a failed attempt.
If the test is successful and we push to 50k, then it means we are heading higher to the Red Supply Area at 53k.
If the test fails, then it means sellers have made up their mind to keep price under 50k till the end of the year. The blue demand zone at 46k area will be at serious risk of breaking.
Happy Trading and Happy holidays.
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.