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BTCUSD Rising Wedge? Retest Of Local Support?Hello Traders! Today’s chart update will be on BTC’s short term projection on the hourly time frame. We have a potential rising wedge that needs to be confirmed with a third touch on the lower trend line. A break from this formation is bearish, if it plays out; we are more probable to test lower support, where the triple bottom was established. Points to consider - Price respecting trend line - Triple Bottom as lower support - Local resistance at $8690 region - Stochastics neutral - RSI respecting trend line - EMA’s giving price resistance - Volume is below average - VPVR, low volume of transactions between local and major structural resistance BTC with a high degree of probability could be forming a rising wedge that breaks down to a technical target of lower support, the triple bottom region. Price is respecting trend line, we need a third touch for confirmation which will put more merit on this wedge formation. Local resistance is a key area that needs to be broken for a bullish bias; if this level is broken we are technically more likely to reach major structural resistance as the VPVR shows very low levels of transaction between the two segments, in other words, low levels of resistance… The Stochastics is currently neutral, no clear direction of where momentum is stored. The RSI however is respecting its trend line; a bounce from here will help put more emphasis on the formation of the rising wedge. EMA’s both are giving price resistance at current given time, although does look weak as BTC has been trading through it. Volume on the other hand is also weak, below average; we need to see an increase in sustainable volume to confirm a break out whether it is a bullish or bearish break… IMO, a potential breakdown to local support, the triple bottom, is more likely if this holds to be a true rising wedge. If we break local resistance, then this formation will be negated, I will then have a bullish bias, BTC will more likely retest its major structural resistance. What are your thoughts? Please leave a like and comment And Remember “The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.” – Victor Sperandeo
BITFINEX:BTCUSD
by AzizKhanZamani
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