Bitcoin Long Trade (Technical Analysis)

Bitcoin Long Trade (Technical Analysis)

Looking at the Bitcoin Chart on the 12 hour time frame, it appears to have formed a falling wedge pattern.
I would wait until a candle closes above the resistance line (Orange line) of the wedge and then (and only then) enter a trade.

Right now it the price is being supported by the 50 moving average, which is a good sign that the bulls are have not yet surrendered to the bears. A break below the 50 MA would signal a bearish trend .

This very well could be the bottom of the current pullback from the all time high last week, but it is too early too tell.

If the falling wedge pattern plays out the price target would be the top of the wedge , between $66,000 and $67,000, but I would take profits along the way up, and watch out for that resistance zone (zone #2) as it could be a bear trap.

Remember, I wouldn’t enter a long position until a break above the wedge is confirmed, and to set a stop loss in case of a fake out.

Happy Trading!
If you got anything out of this, please leave a like & or a comment 🙂
If you disagree with my analysis please let me know your thoughts as well.