Bitcoin's Ascending Wedge: Will it Breakout or Breakdown?
Updated
Bitcoin has formed an ascending wedge pattern, where the price is trending upward within a narrowing range. If it breaks below the lower trend line, it could reach the targets mentioned. If the price bounces off the lower trend line and touches the upper trend line, it could potentially break through and flip it as a support level, indicating a continued upward movement or it could come down again, and retest the lower trend line. A pullback is often seen as a sign of a healthy and sustainable upward trend. Read my attached analysis for further updates on Bitcoin's performance.
Note
BTC initially attempted to break out of an ascending wedge pattern, but the volume was not sufficient to support the move. However, BTC then formed a bull pennant on the 1-hour chart. The pennant is now attempting to break out. My thesis remains valid if BTC can reclaim the territory of the ascending wedge. Additionally, the recent movement has formed an ascending channel, with the upper trendline of the channel aligning with the upper trendline of the ascending wedge. The bearish targets remain unchanged. See the related long-term idea for bullish targets.Note
Nice liquidity grab! It's possible that it could be a retest of the broken lower trend line of the wedge. I'll be keeping a close eye on the diagonal S/R levels of the wedge.Note
BTC retested the trend line and got rejected. Targets remain the same.Note
PA is exhausted. Bearish divergences are present since Jan 14. 4H RSI is attempting to break the resistance. If it succeeds, there may be a chance for a pump. If it fails, it could result in a dump. Opening longs here is not advisable as the R/R is high. DCA spot on retracement.
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