BTCUSD
In a previous analysis we made note of the ascending wedge formation bitcoin was currently in and the area of resistance we would have liked to see the price breakthrough.
daily
On the daily time frame, bitcoin ran up and out of the wedge formation and actually managed to close a daily candle above the critical resistance we were watching. The candlestick, however, was a bearish harami and drove the price back down into the wedge formation. It appears very likely we will see a retest of the wedge support.
The ascendning wedge formation is a bearish chart pattern. If the wedge trendline support fails, the line in the sand will be the daily pivot $4085.
4 hour
On the 4 hour time frame, notice the extended stochastic RSI as the volume picks up and the price is driving to the downside and currently testing the 30ema as support. Loosing this level on volume will likely start a bearish divergence in the MACD.
Bullish Above: $4460
Bearish Below: $4190 ... very bearish below daily pivot
RISK TRADE: scale into a short position here, maintain a tight stop loss, take profits along the way. Alternatively, wait for a breakout or the daily pivot to hold for a long position.
don't forget to set stop losses!
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Follow at your own risk, Not a financial adviser, understand the risks associated with trading and investing. Manage your own Risk - in other words you could lose it all and it is your own fault