IMO we are seeing a large descending wedge, not a descending triangle. We are currently on the 0.146 weekly Fib retracement and seen some significant bullish price action recently at these levels.
If we do break down through the wedge, I expect we will go down to the 5000 region. As such a round number, less than people have been able to buy bitcoin for a good part of a year and the exact 1.618 extension of the first December drop, it's hard to see dropping past that point. Hopefully, we would instead see the start of a sharp trend reversal propelled by the massive 1.618 extension being met
If we do break down through the wedge, I expect we will go down to the 5000 region. As such a round number, less than people have been able to buy bitcoin for a good part of a year and the exact 1.618 extension of the first December drop, it's hard to see dropping past that point. Hopefully, we would instead see the start of a sharp trend reversal propelled by the massive 1.618 extension being met
Note
We also have a hidden bullish divergence:Note
Note
Few points of confirmation here:- Daily candle closed as bullish engulfing
- Above average buy volume
- MACD crossed bullish on same high volume candle
- Stochastic RSI crossed bullish on same high volume candle
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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.