Falling wedge on Bitcoin (BTCUSD)

13 nov. 2019

Hello, it’s been awhile since I’ve posted an idea on Bitcoin, but I think there could be a short-term opportunity I wanted to write about.

Bitcoin looks like it is setting up for a bullish reversal based on the following:
1.) Price is at a structural support range.
2.) 2 interlapping fibs
3.) Falling wedge Pattern
4.) Bullish Divergence on RSI and Sentiment Index (4 hour time frame)
5.) Bearish exhaustion on RSI at the oversold level, prior to development of bullish divergences.

Long here with a stop below the 2 interlapping fib levels. Target is around 9,300 which is the top of the range.

Thanks for taking the time to read my analysis. Please give it a like if you found this useful!

14 nov. 2019

Note

So we obviously got another drop last night but the falling wedge pattern is still intact and we see a nice containment of the candle body within the wedge. Seems like that 0.618 level is still a good entry for longs, as we see more wicking from that spot. The RSI and Sentiment Index both dropped below my initial trend lines, however both are still maintaining a higher low. It makes sense to see the candle bodies settle into this support zone (and not just wicks down) so I’m not overly concerned if the price keeps falling, as long as we do not break below the range. This is why I have my stop placed below the 0.618 fib level. We will get confirmation of a move up once this falling wedge gets broken with a candle close outside the pattern.