[ANALYSIS]: BTC could restart the rally towards new high SOON!
I posted an idea a few days ago where I was explaining the types of divergences in the financial markets and how bullish and bearish divergences have played in the past Bitcoin Price Action.
If you have noticed in that idea, I had also drawn an ascending channel that Bitcoin seems to follow in the recent months after the restart of the bull run. I have told my premium members that Bitcoin can still test the resistance (which got broken on October 6, 2021) i.e 53k area. Showing the coinfluence, the support line of the rising channel is also at $53000.
Currently, we're also having a bullish divergence in BTC 4h, so we can expect a sideways or a pullback type of scenario from here.
Additionally, if we analyze the BTC in a daily timeframe from the months of May-June till date, we can see that Bitcoin tends to form a massive falling wedge, creating fear in the market and then liquidating late shorters! It did the same thing when it was in the 30k area, did the same thing in the late-September, and now it seems like Bitcoin is again forming a falling wedge when tends to have a Bullish Breakout.
If Bitcoin repeats the history and this falling wedge plays out, it needs to flip a very important level of $60000 to start the rally. On the other hand, a bearish daily close outside this channel can hint us to see a huge sell-off aka WATERFALL!
Muneeb
If you have noticed in that idea, I had also drawn an ascending channel that Bitcoin seems to follow in the recent months after the restart of the bull run. I have told my premium members that Bitcoin can still test the resistance (which got broken on October 6, 2021) i.e 53k area. Showing the coinfluence, the support line of the rising channel is also at $53000.
Currently, we're also having a bullish divergence in BTC 4h, so we can expect a sideways or a pullback type of scenario from here.
Additionally, if we analyze the BTC in a daily timeframe from the months of May-June till date, we can see that Bitcoin tends to form a massive falling wedge, creating fear in the market and then liquidating late shorters! It did the same thing when it was in the 30k area, did the same thing in the late-September, and now it seems like Bitcoin is again forming a falling wedge when tends to have a Bullish Breakout.
If Bitcoin repeats the history and this falling wedge plays out, it needs to flip a very important level of $60000 to start the rally. On the other hand, a bearish daily close outside this channel can hint us to see a huge sell-off aka WATERFALL!
Muneeb
Related publications
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.