BTCUSD Critical Support Area! Potential Falling Wedge?
Hello Traders!
Volatility is back for Bitcoin! The bear flag came to fruition (chart in link below), Bitcoin is now currently testing a critical support zone which needs to hold otherwise lower lows are at play. The chart is somewhat also forming a potential falling wedge formation, which is a bullish pattern, are we probable to see a bounce from current lows?
Points to consider,
- Trend bearish, consecutive lower highs
- Critical support being tested
- Local resistance at .50 Fibonacci
- Stochastics in lower regions
- RSI testing trend line
- EMA’s giving price resistance
- Spike in volume upon breakout
BTC confirmed its bear flag formation with a decisive break with above average volume, the technical target for this bear flag coincides with major structural support. Critical support in the meantime is being tested, price has wicked and bounced of the .618 Fibonacci level at current given time. Local resistance is as the .50 Fibonacci level, which needs to be breached if we see a bull break from this potential falling wedge pattern. This will allow price action to put in a local higher low…
The stochastics is currently in the lower regions, needs to cross over for upside momentum, the Stochs can stay very irrational in lower regions; we need to see a confirmed cross for upside momentum. RSI is quite interesting, it is respecting its trend line, the current third touch needs to hold, which will put more emphasis on a potential bullish divergence being at play.
EMA’s are currently giving price strong resistance, they need to cross bullish otherwise we simply remain in a distinctive bear trend. Volume has had a decent spike upon this bear flag break, this confirmed that the break wasn’t false, for a continuation either way, we need to see an increase in volume otherwise consolidation may be at play at current level.
Overall, IMO, if the current level does not hold, BTC is more probable to test major structural support, which is the technical target of the bear flag. If price does hold, we are more probable to test upper resistance of the potential falling wedge pattern; it all really depends on volume at current given time…
What are our thoughts?
Please leave a like and comment
And remember,
The goal of a successful trader is to make the best trades. Money is secondary. – Alexander Elder
Volatility is back for Bitcoin! The bear flag came to fruition (chart in link below), Bitcoin is now currently testing a critical support zone which needs to hold otherwise lower lows are at play. The chart is somewhat also forming a potential falling wedge formation, which is a bullish pattern, are we probable to see a bounce from current lows?
Points to consider,
- Trend bearish, consecutive lower highs
- Critical support being tested
- Local resistance at .50 Fibonacci
- Stochastics in lower regions
- RSI testing trend line
- EMA’s giving price resistance
- Spike in volume upon breakout
BTC confirmed its bear flag formation with a decisive break with above average volume, the technical target for this bear flag coincides with major structural support. Critical support in the meantime is being tested, price has wicked and bounced of the .618 Fibonacci level at current given time. Local resistance is as the .50 Fibonacci level, which needs to be breached if we see a bull break from this potential falling wedge pattern. This will allow price action to put in a local higher low…
The stochastics is currently in the lower regions, needs to cross over for upside momentum, the Stochs can stay very irrational in lower regions; we need to see a confirmed cross for upside momentum. RSI is quite interesting, it is respecting its trend line, the current third touch needs to hold, which will put more emphasis on a potential bullish divergence being at play.
EMA’s are currently giving price strong resistance, they need to cross bullish otherwise we simply remain in a distinctive bear trend. Volume has had a decent spike upon this bear flag break, this confirmed that the break wasn’t false, for a continuation either way, we need to see an increase in volume otherwise consolidation may be at play at current level.
Overall, IMO, if the current level does not hold, BTC is more probable to test major structural support, which is the technical target of the bear flag. If price does hold, we are more probable to test upper resistance of the potential falling wedge pattern; it all really depends on volume at current given time…
What are our thoughts?
Please leave a like and comment
And remember,
The goal of a successful trader is to make the best trades. Money is secondary. – Alexander Elder
Join my free telegram! t.me/chartdoctorsanconsultants
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Follow me on Twitter! twitter.com/pinkdawn__
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