Waiting for wedge outbreak
Updated
With bitcoin recently breaking its all time high, price action is considered highly volatile and unpredictable. Bitcoin seems to be forming a wedge pattern on the daily time frame as indicated by the blue support line at $22,500 and the red descending resistance line. Ideally, we would like to wait for this outbreak to occur before we obtain any new positions on the pair. If the outbreak is bearish, we could see a potential price drop to a former resistance level at approximately $19,400 indicated by the orange line. If the outbreak is bullish, we could see price move towards $26,000. As long as the 9 EMA stays on top of the 26 EMA and the two do not cross, you can safely consider this uptrend valid. If the 9 and 26 EMA cross, or if the candlesticks break out of the ascending channel indicated by the upward sloping green lines, this uptrend would no longer be considered valid. Once the trend is considered invalid, we could see major sell offs and extreme lows. With the increase in volume in this bull run compared to the 2017 bull run, it might be possible that these high prices could become new lows for bitcoin.
Note
Bitcoin just reached new all time high at 25k. I will be selling a few btc here, waiting for higher highs but prepared for the lower lows that are sure to come. Stay vigilant if you have a position on this pair.
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