BTC relief wave upwards after panic selling and fear
Last two days we were witnessing some of the most extreme panic selling and fear in this market. There is still a lot of fear present.
Usually when we have these conditions, we should watch closely for signals of a bounce and a retrace.
Looking at the price movements today, we already see a slowing momentum of selling (if we look closely enough).
Although many are calling for prices in the 4k and 5k area and are expecting it to happen these days, we will likely first see a bounce, a relief rally happening, before any further major price drops.
I still think we are in a bear market, and a major downtrend overall. And we may see prices in those extreme low areas, but IF that happens, it will most likely happen after this wave upwards.
Price is currently moving in a falling wedge. The price may bounce and go down from the wedge resistance once or twice more before breaking out. The wedge support line should hold the price after it retraces from the wedge resistance.
Once the price breaks out of the wedge with good volume, we have confirmation and a buy signal.
If the wedge support line breaks down, then this pattern is invalidated. Place stops below the wedge support line.
Targets:
1. 7200
2. 7500
3. 7700
I do expect the price to pull back and test the support of the wedge once more, so that could create a good buying opportunity. (it could also break out from here, but less likely)
As always, not all targets may be reached, so make sure to lock in part of the profits at each of the targets.
Usually when we have these conditions, we should watch closely for signals of a bounce and a retrace.
Looking at the price movements today, we already see a slowing momentum of selling (if we look closely enough).
Although many are calling for prices in the 4k and 5k area and are expecting it to happen these days, we will likely first see a bounce, a relief rally happening, before any further major price drops.
I still think we are in a bear market, and a major downtrend overall. And we may see prices in those extreme low areas, but IF that happens, it will most likely happen after this wave upwards.
Price is currently moving in a falling wedge. The price may bounce and go down from the wedge resistance once or twice more before breaking out. The wedge support line should hold the price after it retraces from the wedge resistance.
Once the price breaks out of the wedge with good volume, we have confirmation and a buy signal.
If the wedge support line breaks down, then this pattern is invalidated. Place stops below the wedge support line.
Targets:
1. 7200
2. 7500
3. 7700
I do expect the price to pull back and test the support of the wedge once more, so that could create a good buying opportunity. (it could also break out from here, but less likely)
As always, not all targets may be reached, so make sure to lock in part of the profits at each of the targets.
تعليق:
Trying to break out of the wedge already. But I don't see enough volume.
تم فتح الصفقة:
This breakout has good volume now.
تعليق:
First target reached. 7200 is a minor resistance, so it could have some issues breaking it. But after a small consolidation here, forming a bull flag, it should be able to break out. Otherwise, it gets rejected and down we go.
تعليق:
Looks like it's trying to break out of the bull flag. If successful, it can push the price through the resistance at 7200.
تعليق:
Formed a rising wedge wich might take the price back to 7005 (projected wedge target if it breaks down)
تعليق:
Rising wedge target at 7005 reached. Hoever, this might drop off some more, since it got rejected at 7200 resistance after 2 attempts.
تعليق:
Another attempt at breaking the 7200 resistance. Less volume this time, but could be successful. After retracing from 7200 first time, the price formed a higher low. It's a good structure for upward movement.
تعليق:
Currently moving in an uptrend channel. If the channel breaks down, we might retest lower supports once more, but until that happens, this is going up.
تعليق:
Out of the channel now.
