The image speaks for it self. On the second quarter 
XBT formmed a rising wedge; with divergence with its MACD, that made a downward breakout and then a pullback near the bottom line giving a strong sell signal. The price declined -50% after that. Now, on the third quarter Bitcoin is making the same pattern but on the upside. This time is a declining wedge with breakout up from climax trough accompanied by a strong bullish divergence with the MACD and declining volume.
According to the rules of this pattern, the price should continue this throwback to test the green zone just like it did on the rising wedge. This zone could be a good buy signal, although, for me is too risky. So I will wait until the price breaks out the $42,000 resistance to actually confirm the new bull trend and then act on it.
With a buy zone above $42,000 the sell zone should be near the $60,000 zone for a +40% return.
XBT formmed a rising wedge; with divergence with its MACD, that made a downward breakout and then a pullback near the bottom line giving a strong sell signal. The price declined -50% after that. Now, on the third quarter Bitcoin is making the same pattern but on the upside. This time is a declining wedge with breakout up from climax trough accompanied by a strong bullish divergence with the MACD and declining volume.According to the rules of this pattern, the price should continue this throwback to test the green zone just like it did on the rising wedge. This zone could be a good buy signal, although, for me is too risky. So I will wait until the price breaks out the $42,000 resistance to actually confirm the new bull trend and then act on it.
With a buy zone above $42,000 the sell zone should be near the $60,000 zone for a +40% return.
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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.