BTC wedge, potential bounce & drop
It looks like BTC has managed to solidify a short term head and shoulders pattern that has broken the neckline downward.
Based on the extension of the neckline from the head distance (orange dotted lines), it looks like the dip might extend near the 78.6% Fibonacci retracement level near 32-33K (although 35K is a possibility as well at the 61.8% Fibonacci level).
Regardless of the short-term dips, there does seem to be a wedge forming (long-term bearish pennant?) which may indicate a continuation down based on short-term continuation bearish divergence (red line on RSI if a bounce does occur). This is based on a bounce based on short-term bullish divergence (light green line on MACD), however an early break of the wedge could send the price to near 15-25K if a break occurs sooner (prices are based on Fibonacci extensions).
Either way, the trend looks bearish with some potential bullish bounces over the next few days extending into June. However, a break upward out of the wedge in early June is possible with some bullish possibilities as well, so it should be interesting to see what transpires over the next few days.
As always, this is not financial advice and is solely my opinion, but please like if you agree or comment with any opinions.
Based on the extension of the neckline from the head distance (orange dotted lines), it looks like the dip might extend near the 78.6% Fibonacci retracement level near 32-33K (although 35K is a possibility as well at the 61.8% Fibonacci level).
Regardless of the short-term dips, there does seem to be a wedge forming (long-term bearish pennant?) which may indicate a continuation down based on short-term continuation bearish divergence (red line on RSI if a bounce does occur). This is based on a bounce based on short-term bullish divergence (light green line on MACD), however an early break of the wedge could send the price to near 15-25K if a break occurs sooner (prices are based on Fibonacci extensions).
Either way, the trend looks bearish with some potential bullish bounces over the next few days extending into June. However, a break upward out of the wedge in early June is possible with some bullish possibilities as well, so it should be interesting to see what transpires over the next few days.
As always, this is not financial advice and is solely my opinion, but please like if you agree or comment with any opinions.
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