GRT Short Term Descending Broadening Wedge [Bullish]What’s up fellow traders! I hope you are all well and enjoying the GRT ride so far?!
I just wanted to share a few things I have observed recently and what I am looking for from GRT over the next week. As you know GRT has been a really exciting market to trade in both BTC/GRT and GRT/USD-EUR-GBP and I am super positive for the future on this project.
I know that everyone is very excited for the $1+ move, as am I and it’s going to happen soon. However, although I am seeing some potential bull flags, my attention have been drawn to the sexy Descending Broadening Wedges that GRT has been printing since its launch in December. These are incredibly bullish, as the price on GRT has demonstrated and are some of my personal favourite patterns to observe following a market hitting an ATH or local highs; especially as the vast majority of Descending Broadening Wedges end with a bullish exit.
The first two Descending Broadening Wedges I have drawn are validated by the price touching resistance and support lines 2-3 times within the wedge. The oscillation of the pattern then tightens towards the end of the broadening wedge, drops out of the bottom of the Bollinger Band's, just at the point where sellers & shorter's lose control of the market and buyers take over.
What is particularly interesting to me within these Wedge patterns is that the RSI is cooking white hot at the previous local highs and the recently printed ATH (obvious I know, but 'Bear' with me - excuse the pun!) however the bounce to new local highs has been made after the RSI cools down to <40.00; ideally around 35.00 or less.
I fully appreciate the euphoria and enthusiasm of the recent ATH and calls for $1 (which will happen), especially in the excitement of this bullish cycle and the strong fundamentals of this project. However, I believe that it’s too obvious of a move at present and until the RSI cools off to <35.00 and the Descending Broadening Wedge plays out then $1 will not happen just yet. Sellers are hard shorting GRT at the moment below 0.85 and I can see why.
Another point of interest is the falling volumes, which whilst not always a huge problem, can have a serious impact whilst prices are trying to rise.
So what am I doing about it......
Buying now is not a weak or poor trade as $1 will happen, however much greater profits can be yielded, by looking for better prices further down the broadening wedge. I would usually use some Fib channels to present entry points for longs, but I don’t like using them on short time frames and new markets. However..........
.............. my current position is that I have laddered many buy orders from $0.70 down to $0.60 to add to my bags and I will be looking for a very strong bounce when the RSI cools off and there is a drop in price and exit at of the bottom of the Bollinger Bands. Then I will be looking for a very strong rise to new ATH's; near or above $1, whereby I will provide further analysis.
Will all my buy orders get filled? Probably not, but I do expect a local bottom around $0.66 - $0.65 and have put extra buy orders in lower just in case the Broadening Wedge fully plays out or BTC has a diva moment.
Of course this is the crypto world and anything can happen, so if a breakout (up or down) occurs out of the Descending Broadening Wedge, then my analysis is invalidated and you can all laugh and point at me. ETH is mooning (and may dump hard too after), so that might have an unpredicted effect, plus this world is off the charts mental in general !!
This not financial advice, so please take this with a pinch of Colombia’s finest white export that you buy on the dark web with your naughty Monero.
If you have made it this far, I thank you sincerely for the dedication and love and if you message me your 'Kriegerrand' wallet address I will drop you a few coins :-)
Happy trading and stay safe.
