Bitcoin in a Falling Wedge?
Falling wedges can break either direction & are notorious both for faking out market participants AND for the speed at which the ultimate move goes. Should this pattern fill out a bit more so that it's crystal clear that it's a FW, here are the break out targets visualized.
For breaks to the upside:
~$30,000 (macro resistance)
~$25,000 (highest high in the pattern)
For breaks to the downside:
~$9,750 (1.618 extension of move)
~$5,250 (measured move)
Armed with these targets, you should be able to begin formulating a plan.
Again, markets tend to move VERY quickly once a breakout occurs. I often liken it so someone yelling FIRE in a crowded theater & everyone rushing for the exits at once. Those sidelined & off sides will react swiftly to close their positions (both manually or with stops). Margin cascades will occur fast and fierce.
As is often the case during bear markets, LIMIT YOUR MARGIN USAGE!
For breaks to the upside:
~$30,000 (macro resistance)
~$25,000 (highest high in the pattern)
For breaks to the downside:
~$9,750 (1.618 extension of move)
~$5,250 (measured move)
Armed with these targets, you should be able to begin formulating a plan.
Again, markets tend to move VERY quickly once a breakout occurs. I often liken it so someone yelling FIRE in a crowded theater & everyone rushing for the exits at once. Those sidelined & off sides will react swiftly to close their positions (both manually or with stops). Margin cascades will occur fast and fierce.
As is often the case during bear markets, LIMIT YOUR MARGIN USAGE!
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