BitcoinLong
Long-Term Wedge
Updated
I'm almost leery to share the bullish form of my model, as I find it unlikely to be true. However, I figured it was worth sharing how nicely this model fits with the Wyckoff Accumulation schematic people have been sharing lately: d.stockcharts.com/school/data/media/chart_school/market_analysis/wyckoff3/wyckoffaccumulation.png, with $5800 as the Spring of Phase C.
Considering how quickly the February dump was, I experimented with cutting the wicks on the daily to form my trendlines. This forms a descending wedge pattern that meets with the historical horizontal support level at $5800. Obviously, buying pressure will have to pick up near the bottom of the wedge to validate this model. Otherwise, the price will likely drop hard. If trading this pattern, tight stop-losses will have to be set below support. Otherwise, wait for validation of the model with increased buying volume followed by breakout from the wedge before buying.
Considering how quickly the February dump was, I experimented with cutting the wicks on the daily to form my trendlines. This forms a descending wedge pattern that meets with the historical horizontal support level at $5800. Obviously, buying pressure will have to pick up near the bottom of the wedge to validate this model. Otherwise, the price will likely drop hard. If trading this pattern, tight stop-losses will have to be set below support. Otherwise, wait for validation of the model with increased buying volume followed by breakout from the wedge before buying.
Note
Trade successful.
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