A smaller falling wedge was formed on the large wedge on the #BTC daily chart. Will it break up?
In image 1 we can see the price chart of the #BTC and the #RSI indicator:
Image 1 : tradingview – 2018-05-18 – 1 day timeframe – BTC wedge
You can see a larger wedge with neutral inclination in purple, and inside a falling wedge traced in purple. The falling wedge is a bullish pattern that suggests a rise in prices. Even the RSI and the oversold Bollinger bands suggest a rise in prices.
At this moment, however, every forecast must be taken with attention given the mainly bullish trend. So one possibility could be to try a long entry on the short run, bearing in mind that the purple triangle would be a resistance.
In this article we resume analyzing the BTC / EUR exchange rate, following the current price recovery. It is important to understand immediately that the main trend remains for now bearish, so care must be taken not to exchange the current recovery with a reversal of the trend.
In the image 1 we reproduce the graph of the BTC / EUR on the 1 day chart:
Image 1 : TradingView – BTC / EUR April 15th at 10.40am – Timeframe 1D
What we can see on the chart is:
- A newly broken upside down wedge pattern ;
- The trend lines in purple which, being bearish, are resistant to rising prices;
- The further line in violet formed by a relative maximum which also acts as a resistance;
- The oblique line outlined in black that is worth the price target if they continue to rise;
- Always in dotted below the black line that instead acts as a support ;
- The ADX and DI nvece warn us: although there has been an increase in prices, this is not yet so marked as to signal an inversion of the trend, not even in the short term;
- The RSI also tells us that we are overbought;
At the current state of prices it is hoped that they continue to rise, thus reaching the target of € 8760. At the same time, however, the RSI and the ADX and DI warn us about the fact that there could be a short retracement: in fact, yesterday and today prices have begun to sideways instead of continuing the upward climb.
A possible interpretation is therefore, for those in the market, to place appropriate stop losses, and constantly monitor the market trend.
For those who are out of the market, it may be appropriate to wait to enter, perhaps by entering a stop buy order.
So the situation is neutral and should be monitored.