Bitcoin's descending wedge
Updated
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First off, give me a follow if like my idea/thoughts. I am looking for people to network with and bounce ideas off of. Only been trading a short period of time, but have been trained by the Master Jedis themselves: Eball8 and Philakone
Don't get your hopes up for bitcoin just yet. Bitcoin COULD be in a descending wedge leading to under 7k. I see solid support lines in this descending wedge and believe we are looking at one last downtrend towards around 7,000 that would FINALLY finish bitcoins correction period. More updates to come as days go on.
Thoughts???
First off, give me a follow if like my idea/thoughts. I am looking for people to network with and bounce ideas off of. Only been trading a short period of time, but have been trained by the Master Jedis themselves: Eball8 and Philakone
Don't get your hopes up for bitcoin just yet. Bitcoin COULD be in a descending wedge leading to under 7k. I see solid support lines in this descending wedge and believe we are looking at one last downtrend towards around 7,000 that would FINALLY finish bitcoins correction period. More updates to come as days go on.
Thoughts???
Note
s3.amazonaws.com/tradingview/snapshots/9/9zVDc2Uj.pngHere's a quick update on my thoughts of bitcoin. We see the uptrend staying strong over the past 24 hours, I encourage you to NOT to believe the lowest point is behind us. If you live in the U.S. and unfortunately can't short trade just yet,I would try to find an exit point of of bitcoin while she finishes correcting (yes...she). As the next few days play out I will update this idea and keep a close eye on the path bitcoin takes. As of now, I'm targeting 10,475 USDT. As much as I don't trust Tehter, it does save me money when I suspect a downtrend in bitcoin or the market as a whole; which there is no difference between those two at this stage of the Crypto market.
Note
s3.amazonaws.com/tradingview/snapshots/n/NmR749TZ.pngI took a look at bitcoins RSI and see that the peak of wave 4 may be delayed longer than I originally targeted. There is a possible resistance at 52 RSI and can see bitcoin correcting for a short day or two before reaching the top resistance line of the descending wedge (wave 4). New exit zone I will be targeting, if the RSI stays true to this resistance, is just above 10,000 USDT.
Note
s3.amazonaws.com/tradingview/snapshots/b/B82eVQHL.pngAs of bitcoins current descent, it looks like bitcoin could form a new support line for the descending wedge. This means the wedge could possibility hit even lower targets and prolong this down trend. If bitcoins stays true to my first target of the wedge then we will see a bounce off of the previous support line at about 7,900 (yellow trend line, scenario 1). If it breaks through this support we can see the price go much lower (purple line, scenario 2). I estimate (pure guess) the new support line would form around 7,300. Once again, this price point is a complete guess and if bitcoin breaks the support, I will be looking to see where it marks it's next lowest point to readjust the descending wedge. I believe scenario 1 is more likely to fall into place. However, I might be a little too optimistic.
Note
s3.amazonaws.com/tradingview/snapshots/y/ylh6SdcX.pngBoom! Scenario 1 played out. The support line held strong at 7,900 and we will now hopefully see an bullish trend towards our 4th point of the descending wedge. One more step closer to the end of bitcoins correction.
Note
s3.amazonaws.com/tradingview/snapshots/t/tZRoIS3t.pngLooks like I spoke too soon. Through the night bitcoin broke through the previous support line at 7,900 and scenario 2 from my previous update took place. I believe we have see the lowest point of this down trend, which is also our 5th subwave point at 7,200. I readjusted to descending wedge to the new support lines and we should see and uptrend from here to our 4th wave point. Keep in mind, we can still go lower on the this downtrend.
Positives: this subwave correlates perfectly with our descending wedge, which is showing an uptrend and many possible swing trades for the next few days.
Negatives: now that we have established a new support line on our wedge, we readjust our targets. The wedge now will pro long this correction and hit even lower targets of near 5,800 on our final descent to the 5th wave point.
Note
s3.amazonaws.com/tradingview/snapshots/g/gAtKSmOy.png6,000! I did not think we would see bitcoin hit 6,000 here forming our descending wedge support line. That means we could see a lower price point finishing our wedge in a few weeks. As volume picked up, bitcoin is now on its uptrend towards the 4th point of our wedge. An important confirmation to see is a break through the previous resistance line that our sub-descending wedge formed. More updates to come.
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