Continuation projection for BTCUSD Bitcoin, next few weeks.Quick update on my previous Bitcoin entry LONG.
Things to consider:
1. Diagonal trend breaks (Descending wedge patterns) are generally the most predictable & strongest breakout patterns. Not that I'm a "pattern" trader, its just that charts with lots of liquidity have generally predictable behavior.
2. The 1st projected target was hit & there hasn't been a substantial pullback since the breakout. That being said, pullbacks beyond 30-50% retracements at this point will be good day trading setups (as the bullish momentum has proven to be strong).
3. Long-term, BTCUSD IS STILL IN AN UPTREND on daily & weekly timeframes. In a month or so, a strong resistance could be hit & this story could have a very bearish end.
Conclusion, Profit Target #2 is a predictable resistance that all descending wedge patterns hit. I have taken profits on my day trade entries. My long-term account however, is still a hold for me, as I started buying heavy into bitcoin around the $3-4,000 level. The only thing that would have me questioning my position is: A. if we fail hard at this 2nd Profit target I have marked. B. if we fail the whole diagonal level that I entered (on the 1 hour chart) & cant get back above these levels.
Again, this is a 1-4 hour analysis, so hitting profit target #3 OR failing & going into a bear market is too early to tell. Either of these moves giving us a clear long-term direction, could take up to 3 months to play out. Just being realistic (based on my market experience) with my time projection.
