BTCUSDT Pumped - Time to look for reversal patterns
Updated
As the euphoria of a potential bull run coming in, we must continue to look out for any potential reversal patterns and play both sides of the coin - either Long or Short.
With the recent pump from the lower trendline, we can see that an ascending wedge has formed with the Higher Highs (HH) and Higher Lows (HL) plotted on the chart. Both resistance and support trendlines are well respected.
We are now currently touching the upper trendline and we expect through the weekend some volatility before touching the bottom trendline again.
Breakout of the ascending wedge towards the bottom will definitely spark fear to the market and we will likely head to a newer low. A catalyst will be needed for this which is expected in the coming days/week.
Note: This isnt a trade setup but more of a pattern sharing.
With the recent pump from the lower trendline, we can see that an ascending wedge has formed with the Higher Highs (HH) and Higher Lows (HL) plotted on the chart. Both resistance and support trendlines are well respected.
We are now currently touching the upper trendline and we expect through the weekend some volatility before touching the bottom trendline again.
Breakout of the ascending wedge towards the bottom will definitely spark fear to the market and we will likely head to a newer low. A catalyst will be needed for this which is expected in the coming days/week.
Note: This isnt a trade setup but more of a pattern sharing.
Note
A wick up to 23300 top fakeout happened yesterday and immediately dropped back to the wedge. The ascending wedge is still in play, and with the candles showing confirmation, we can safely enter a short trade here at 22800 with stop loss at the top of the wick 23300.Entry: 22800
Stop loss: 23300
TP1: 22000
TP2: 21500
TP3: Trailing stop loss and let run
Trade active
Note
Looks like we are on the right track. Continue to target.Note
Breakdown happened. Trend looks bearish now with the bearish engulfing candle on the daily and below 50 EMA on the 1H TF which had kept the price up since the initial pump. Trade is still active.
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