BTC is stucked between the EMA 50 and the support zone (9.1k ~ 9.3k), as we note yesterday (see related ideas). However, we can see what might be a falling wedge pattern.
Observe the downtrend line 2 (support) and the downtrend line 3 (resistance). We have almost all the ingredients of a Falling Wedge - a bullish pattern.
Now look at EMA 200 and the vertex of the wedge: it seems they converge around 8.2k (support zone).
Turn your attention now to MACD: the fast line is becoming flat - the bottom is near?
Then look at the size of the candles. They are getting smaller. Some analysts interpret this as a reversal sign. Consider that the volume is falling (remember: "volume goes with trend"). Again: the bottom is near?
Let's examine a possible bottom (let's consider just closing prices). We have a double top formed on June 26 and July 10. The highest closing price of the double top was 12.9k. Between the tops, the minimum closing price was 10.5k. The expected fall above the confirmation line is 2.4k. Then, we can expect that the prices will fall to 10.5k - 2.4k = 8.1k (close to the vertex of the wedge).
On the other side, we have a bearish channel formed by downtrend lines 1 and 2.
If you consider the downtrend line 3 and the support zone 9.1k ~ 9.3k, we have a bearish triangle.
A breakout may occur soon (max. 8 days from now to the projected vertex of the wedge).
I conclude with what I said in the previous analysis: bulls are tired, bears are afraid. Maybe I should correct: bulls are tired, bears are watching and waiting.
Observe the downtrend line 2 (support) and the downtrend line 3 (resistance). We have almost all the ingredients of a Falling Wedge - a bullish pattern.
Now look at EMA 200 and the vertex of the wedge: it seems they converge around 8.2k (support zone).
Turn your attention now to MACD: the fast line is becoming flat - the bottom is near?
Then look at the size of the candles. They are getting smaller. Some analysts interpret this as a reversal sign. Consider that the volume is falling (remember: "volume goes with trend"). Again: the bottom is near?
Let's examine a possible bottom (let's consider just closing prices). We have a double top formed on June 26 and July 10. The highest closing price of the double top was 12.9k. Between the tops, the minimum closing price was 10.5k. The expected fall above the confirmation line is 2.4k. Then, we can expect that the prices will fall to 10.5k - 2.4k = 8.1k (close to the vertex of the wedge).
On the other side, we have a bearish channel formed by downtrend lines 1 and 2.
If you consider the downtrend line 3 and the support zone 9.1k ~ 9.3k, we have a bearish triangle.
A breakout may occur soon (max. 8 days from now to the projected vertex of the wedge).
I conclude with what I said in the previous analysis: bulls are tired, bears are afraid. Maybe I should correct: bulls are tired, bears are watching and waiting.
