FTM has been on a massive run since the July lows. However, FTM has been forming an ascending wedge over the last two months, which is classically a bearish pattern.
If FTM were to follow the wedge pattern, we can soon expect both a new all time high and a reversal from the pattern resistance. This would be around $2.60. In case of a reversal, I'm looking at the $2 area for a potential bounce from the pattern support.
However, with Bitcoin being incredibly bullish, there's a big chance that FTM will just burst through the pattern resistance and make its way to $3. I'm looking at the $3 to $3.25 area for a potential correction in case of a bullish break out.
Are you seeing also the bearish divergence evident since the early September high. In addition to the bearish rising wedge there is also the bearish divergence. Are you sure about this break to the upside? I would think down…
CobraVanguard
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great analysis
KlejdiCuni
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Thanks
ProjectSyndicate
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great chart and technicals
devoperator84
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Doesn't an ascending wedge more often break to the downside?
FieryTrading
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@devoperator84, Absolutely. It's a bearish pattern. However, I'm not expecting a bearish break out from FTM anytime soon, the market is too bullish for that. If we see a rejection from BTC in the coming days, FTM might fall back towards the wedge's support. To break through this support we need even more bearish price action from BTC.
A bearish break out is possible, but just not that likely in my opinion.