BTC possible bearish retest of the falling wedge

8 de dez. de 2021

Here's a quick look at BTC 6 hr chart. As we can see, the price has previously made a possible bearish retest og the falling wedge. The price needs to penetrate the falling wedge to avoid further downside. If it doesn't break back into the falling wedge, we could very well see a revisit of 47k.
The bullish scenario is this: The price breaks back into the falling wedge, then retests the falling wedge and bounces off the falling wedge and in the end breaks it to the upside! Lets see what happens next!
-------------------------------------------
What Is a Wedge in the context of trading?:

"A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are either rising or falling and differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts.

Key Takeaways for Falling wedges:

1. Wedge patterns are usually characterized by converging trend lines over 10 to 50 trading periods.

2. The patterns may be considered rising or falling wedges depending on their direction.

3. These patterns have an unusually good track record for forecasting price reversals."
-------------------------------------------
If you like the content, then make sure to comment and like the post :D

Follow me for daily profitable trading setups

BTC dictates the market. If BTC falls, then Alts will fall as well. Trade safe!