I think BTCUSD may be forming a bullish falling wedge pattern. Correct me if I am wrong.
Based on the premise that BTCUSD is forming a bullish falling wedge, how to determine where the resistance is that will be ultimately broken with high probability?
For my notes on BTC’s falling wedge, please refer to my other post here on steemit titled “Jan 21 2018(21:05UTC): Bitcoin ( BTCUSD ) is NOT a buy, may be a hold or a sell as of today!”( https://steemit.com/bitcoin/@chipmaker/jan-21-2018-21-05utc-bitcoin-btcusd-is-not-a-buy-may-be-a-hold-or-a-sell-as-of-today )
Since the wedges are slanting/have a slope, this time, I am using pitch fan lines as they have the ability to encompass fractals/waves.
The Screenshot of BTCUSD(coinbase) daily chart :
As you see, I used two pitch fan lines to determine the resistance band because in my view resistance is not a single breakout price, its an area where traders are changing their opinion about the price.
As you see, by abductive reasoning, the red resistance band only widens as time progresses which implies that it gets more and more difficult for BTCUSD to breakout of the red resistance band as time progresses. This is due to the fact that the Crpto market is facing shock waves from Governments of respective countries which in turn are drowning retail investors in shock who are leaving the market.
Let's say BTCUSD breaks out of Red resistance band, then I'll wait for retest confirmation (so that I do not enter a failed retest like it happened on Jan 08 2018. obviously that retest failed.)
Therefore, I think BTC is not a buy, may be a hold or a sell as of today(Time: 2:45 UTC)!…Please let me know what you think!
More Details will follow as time permits. Please let me know if I am missing anything…..
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Safe Trading!
Kal Gandikota
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