Now that Bitcoin Price has bounced from 6k the price is fluctuating withing a rising wedge pattern which is developing right under the the top of the falling wedge. Right now there are 2 scenarios that can happen:
1)FIRST SCENARIO- The price Breaks the falling wedge yet remains within the rising wedge, and once reaches around 10k lvl falls from the small rising wedge, at which point the price may form rising channel for further rise towards upper trend line. Daily and 4 hourly MACD are positive and show support toward this scenario.
2)SECOND SCENARIO is a little more depressing... The price may very well bounce from the top of falling wedge and drop from smaller rising wedge. This will indicate that the previous Elliott wave count is prolonged and the count includes larger scale patterns as retracement. This will indicate that current rising wedge is 4th Elliott Wave, and we are due to have wave 5 towards 4k level. 4 hour EMAs also show no upward cross, which may indicate further bounce downward.
Further support toward SECOND SCENARIO is that within small rising wedge the price is potentially forming head and shoulders pattern which will indicate reversal and fall form rising wedge.
Another Support toward further downtrend is that for the last couple of months we witnessed that during weekend the price tends to have little uptrend, probably due to the fact that Futures Trading is Paused. However at the start of week the price continues downtrend, so from Monday the price may follow similar pattern of behavior.
Conclusion: I am inclined toward second scenario due to factors that I mentioned above . However we should keep an eye on the price and whether the price breaks falling wedge or falls from the rising wedge, this next move will determine further price behavior.
ALWAYS USE STOP LOSSES!
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