Bitcoin Falling Wedge!!
Bitcoins still struggling to break up to create a higher high and that may be due to the fact that we have a very obvious falling wedge pattern playing out, price action has respected both levels very strongly and we are seeing that currently with our daily candle getting what looks like a bounce off the top of the wedge. Now historically falling wedges have a high chance of breaking out to the upside but as we all know especially if you are trading there is always the threat of being flushed out before the move actually plays out, and thats exactly what i think we are going to be looking at here. I have drawn out a box ontop of the 0.7 FIB level or just about 38K where major longer term support lays, i think this area is going to be a very likely bounce area or flush out area where a big institutional wick comes into play, the thing is this falling wedge should realistically be coming to an end right around the 0.7 area if we don't breakout sooner, we have the bottom support lining up perfectly with 38K. Another indicator that is very accurate and should be looked at is the mean reversion channel, the oversold-strong oversold area lines up once again with our 0.7 FIB level and as you guys can see at our ATH we were strong overbought and shortly later a big downside was triggered, same thing could apply here where we land in the oversold area, maybe consolidate for a brief period before then recovering back upwards. Looking at the squeeze momentum indicator, we still realistically have some downside left to go, we are currently coming out of a bearish squeeze and are currently fading out of the squeeze release portion, which is the most explosive part to this indicator. The main thing is that we are slowly but surely coming back towards the midline where the opportunity to trigger a bullish squeeze is there, what we want to see continue is the red bars decreasing day after day like we have been seeing recently, showing a decline in bearish momentum and then a strong push into green territory where then we see rising green bars day after day. Now the Wavetrend indicator also gives me more confirmation we are going to dip a bit lower, and the reason being is that the wavetrend after coming up briefly is beginning to come back down, we have a strong curl currently in play and we are beginning to come back down, i personally think we could see something similar to what i have drawn out, a W shaped recovery, we will need to come back down to the buy zone where then we get a bounce and begin the road to recovery. Overall all of these different factors play into the same outlook i have on BTC and the market, everything confirms a little bit further for the drop before having a strong recovery! NOT FINANCIAL ADVICE JUST MY OPINION!
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